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Truist Securities raised its price target on Dave & Buster’s (NASDAQ:PLAY) stock to $29.00 from $22.00 on Wednesday, while maintaining a Hold rating on the entertainment company’s shares.
The price target increase follows Dave & Buster’s first-quarter 2025 results, which missed consensus expectations for same-store sales and adjusted EBITDA, but showed significantly improved recent sales trends.
Truist noted that the company’s interim CEO has implemented a "back to basics" strategy that refocuses on new amusement games and returns to television advertising instead of other marketing approaches.
The firm expects Dave & Buster’s sales performance to improve throughout 2025, with positive same-store sales potentially arriving in the third quarter, aided by easier year-ago comparisons and potentially strengthening consumer demand.
Despite the improved outlook, Truist recommended investors remain "on the sidelines" until Dave & Buster’s develops a long-term plan to better compete, citing the company’s history of market share losses both before COVID-19 and after the period of pent-up demand.
In other recent news, Dave & Buster’s reported its first-quarter fiscal 2025 financial results, revealing an earnings per share of $0.76, which fell short of the forecasted $1.01. The company’s revenue also missed expectations, coming in at $567.7 million compared to the anticipated $573.25 million. Analysts from Loop Capital raised the price target on Dave & Buster’s stock to $46.00 from $35.00, citing early positive trends in the second quarter as a factor. BMO Capital also raised its price target to $35.00 from $30.00, expressing encouragement about the company’s "Back to Basics" strategy, which has shown improved comparable sales. Piper Sandler increased its price target to $30.00 from $22.00, highlighting the company’s improving sales trajectory despite the quarterly miss. Benchmark reiterated a Hold rating on the stock, noting sequential monthly same-store sales improvements since February. These developments reflect Dave & Buster’s strategic shifts and ongoing efforts to stabilize and grow its business amid broader industry challenges.
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