BMO Capital lowered the firm’s price target on Dave & Buster’s to $47 from $51 but keeps an Outperform rating on the shares. The company’s Q3 EBITDA missed estimates amid softer comps and weaker margins, partly influenced by calendar shift and weather, and the firm’s reduced price target is reflecting incremental comp pressures and greater uncertainty given CEO departure, the analyst tells investors in a research note. BMO adds however that it sees favorable risk-to-reward at its current 5.3-times EBITDA multiple and expects initiatives to drive comp improvement in FY25.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PLAY:
- Morning Movers: Macy’s slips following third quarter results
- Dave & Buster’s downgraded to Hold from Buy at Gordon Haskett
- European Wax Center appoints Chris Morris as CEO
- Dave & Buster’s downgraded to Hold from Buy at Truist
- Dave & Buster’s downgraded to Market Perform from Outperform at William Blair