Dennis Geiger, an analyst from UBS, maintained the Hold rating on Dave & Busters Entertainment. The associated price target was lowered to $25.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Dennis Geiger has given his Hold rating due to a combination of factors affecting Dave & Buster’s Entertainment. The company’s second-quarter results showed ongoing sales challenges, influenced by both macroeconomic conditions and specific brand issues, which also impacted margins and earnings. Despite these pressures, the new CEO, Tarun Lal, has outlined a strategic focus on improving same-store sales and adjusted EBITDA through various initiatives, such as enhancing marketing, introducing new games, and optimizing spending and remodel plans.
While the company is in the early stages of a turnaround, with macroeconomic pressures still present and limited visibility, there is potential upside for the stock if the company can return to consistent positive same-store sales. The easing of comparisons and strategic initiatives are expected to support an improvement in second-half sales trends, although macroeconomic headwinds remain a risk. The focus remains on achieving a multi-year EBITDA target, with the expectation of improved margins in the second half as certain costs moderate.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $26.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is neutral on the stock.