Dave & Buster’s price target lowered to $51 from $55 at BMO Capital

BMO Capital analyst Andrew Strelzik lowered the firm’s price target on Dave & Buster’s to $51 from $55 and keeps an Outperform rating on the shares. While BMO Capital has viewed Dave & Buster’s ability to hold and grow EBITDA amid a challenged comp environment as key for shares in FY24, that is unlikely in seasonally lighter Q3, particularly given calendar shifts and hurricane impacts, and the firm sees risk that it will fall short of Q3 consensus, the analyst tells investors in a research note. EBITDA trajectory should be restored in Q4, and BMO remains optimistic about the potential for stronger FY25 momentum.