BMO Capital lowered the firm’s price target on Dave & Buster’s to $30 from $35 but keeps an Outperform rating on the shares. The company’s Q3 EBITDA of $59M was about $1M above consensus, but quality was lower as stock-based compensation contributed about $6M and 4% comp decline fell short of consensus of 3.3% decline, slowing 100bps sequentially despite easier compares, the analyst tells investors in a research note. Trends improved through quarter to down 1% in October however and are holding at similar levels in November, according to the management, the firm added, noting that its Outperform rating reflects optimism that new leadership can combine sound strategic priorities with improved execution and easier compares to return to growth.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PLAY:
- Cautious Optimism for Dave & Buster’s Amid Strategic Improvements and Macroeconomic Challenges
- Dave & Buster’s Q3 Performance: Mixed Results with Positive Momentum in Food and Beverage Comps
- Dave & Buster’s says ‘encouraged’ by continuation of improved comps trends
- Dave & Buster’s reports Q3 adjusted EPS ($1.14), consensus ($1.04)
- Dave & Buster’s options imply 14.3% move in share price post-earnings