Dave & Buster’s price target lowered to $55 from $65 at BMO Capital

BMO Capital lowered the firm’s price target on Dave & Buster’s to $55 from $65 but keeps an Outperform rating on the shares. The company’s Q2 EBITDA topped estimates amid stronger restaurant margins and lower G&A costs which more than offset softer comps, the analyst tells investors in a research note. BMO adds however that while its price target cut is due to softer top-line expectations, Dave & Buster’s results bolster the firm’s confidence that the company could navigate a challenging environment with cost savings as a bridge to more conducive top-line environment in which its strategic initiatives could better perform.