William Blair analyst Sharon Zackfia has maintained their neutral stance on PLAY stock, giving a Hold rating on June 30.
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Sharon Zackfia’s rating is based on a combination of factors, including the recent appointment of Tarun Lal as CEO, whose extensive experience at Yum! Brands brings a fresh perspective to Dave & Buster’s. Although Lal’s background in operational leadership is promising, his lack of direct experience in casual dining or entertainment introduces some uncertainty about his ability to navigate this new sector effectively.
Additionally, Zackfia notes that while there are positive trends since March, the company’s valuation at 5.2 times the 2026 EBITDA estimate, coupled with the ongoing leadership transition, contributes to the Hold rating. Other concerns include volatile comparable sales trends, the uncertain timing and impact of store remodels, and a marketing strategy that is still evolving. Risks such as competition, infrequent customer visits, potential cannibalization from new units, inflationary labor costs, and economic sensitivity further justify the cautious stance.
In another report released on June 30, Truist Financial also maintained a Hold rating on the stock with a $29.00 price target.