William Blair analyst Sharon Zackfia has maintained their neutral stance on PLAY stock, giving a Hold rating on November 26.
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Sharon Zackfia’s rating is based on several factors impacting Dave & Buster’s Entertainment’s financial performance. The company is experiencing a decline in comparable store sales, with the third quarter showing a more pronounced drop than the second quarter. September was particularly weak, although there was some improvement in October. This trend suggests a potential continuation of challenges into the fourth quarter.
Moreover, the company’s revenue growth is expected to be modest, falling short of market expectations. Additionally, there is a notable contraction in unit-level margins, which is anticipated to lead to a significant decline in adjusted EBITDA. These factors combined have led to a cautious outlook, resulting in a Hold rating for the stock.
According to TipRanks, Zackfia is a 3-star analyst with an average return of 3.5% and a 42.01% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Carnival, and Royal Caribbean.
In another report released on November 26, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $16.00 price target.