William Blair analyst Sharon Zackfia has maintained their neutral stance on PLAY stock, giving a Hold rating on April 2.
Sharon Zackfia’s rating is based on several factors impacting Dave & Buster’s Entertainment’s recent performance. The company’s fourth-quarter sales fell short of expectations, with comparable sales declining at the fastest rate since the pandemic closures in 2020. This decline was attributed to strategic missteps by previous leadership, including an overemphasis on digital marketing at the expense of traditional TV, changes in food and beverage offerings that led to customer trade-down, and inadequate testing and prioritization of the remodel program.
Despite these challenges, there are signs of improvement as the company refocuses on core strategies. Sales trends have shown significant recovery in March and April compared to the fourth quarter and February. While the adjusted EBITDA aligned with consensus due to reduced general and administrative expenses, the overall sales weakness and the need for strategic realignment justify the Hold rating, as the company works to stabilize and improve its performance.
According to TipRanks, Zackfia is a 5-star analyst with an average return of 11.8% and a 50.46% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Lululemon Athletica, Carnival, and Potbelly.
In another report released on April 2, Truist Financial also maintained a Hold rating on the stock with a $21.00 price target.