Piper downgrades European Wax Center to Neutral, lowers price target to $7

As previously reported, Piper Sandler analyst Korinne Wolfmeyer downgraded European Wax Center (EWCZ) to Neutral from Overweight with a price target of $7, down from $9. With units being a key driver of growth but anticipated to be flat to down this year, the firm struggles to envision investors being willing to award a stronger valuation. Piper does see opportunity with new management and efforts to re-charge the business, but this could take time and is difficult to quantify. As such, it believes shares are likely to stay range-bound for the time being.