In a report released today, Scott Buck from H.C. Wainwright reiterated a Buy rating on RCI Hospitality Holdings (RICK – Research Report), with a price target of $98.00.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Scott Buck has given his Buy rating due to a combination of factors impacting RCI Hospitality Holdings. Despite a recent decline in quarterly sales, primarily due to adverse weather conditions, the company has shown signs of recovery with improved trends in March. This suggests that the sales dip was temporary and not indicative of a long-term issue. Additionally, the divestiture of underperforming assets is expected to enhance margins over time.
Moreover, RCI’s strategic acquisition of a club in South Carolina aligns with its back-to-basics plan, which is anticipated to drive future revenue growth. The company’s commitment to aggressive share repurchases, coupled with its current undervaluation, presents a favorable opportunity for investors. Scott Buck maintains a Buy rating, supported by the expectation of stronger operating results and increased free cash flow in the coming fiscal years.