Dave & Buster’s initiated with a Buy at Texas Capital

Texas Capital initiated coverage of Dave & Buster’s with a Buy rating and $48 price target The company had suffered from a combination of poor store-level attendance and sales over the past two years caused by the combination of a value-focused consumer economy and a number of strategic initiatives from the previous management that failed to reverse same-store sales declines, the analyst tells investors in a research note. The firm adds however that while still early in the turnaround efforts, it is optimistic that the new management team in place and the “back to basics” focus has the potential to increasingly appeal to the target entertainment-seeking customer base as Dave & Buster’s continues to expand the network in a more spend-appropriate manner.