Dave & Buster’s stock falls as Piper Sandler cuts price target on weak sales

Published 16/09/2025, 13:58
Dave & Buster’s stock falls as Piper Sandler cuts price target on weak sales

Investing.com - Piper Sandler reduced its price target on Dave & Buster’s (NASDAQ:PLAY) to $26.00 from $30.00 on Tuesday, while maintaining a Neutral rating on the entertainment and dining chain.

The price target reduction follows Dave & Buster’s fiscal second-quarter 2025 results, which showed same-store sales declining 3.0%, slightly worse than consensus expectations of a 2.3% drop.

Piper Sandler noted that third-quarter-to-date same-store sales are running approximately in line with the fiscal second-quarter exit rate, suggesting performance worse than the 3.0% decline reported for the full second quarter.

The research firm indicated this performance implies that consensus same-store sales estimates for the current quarter need downward revision compared to pre-earnings expectations of a 0.9% decline.

From both store-level margin and EBITDA perspectives, Piper Sandler characterized the quarter as a miss, adding that adjusted EBITDA estimates will likely be revised lower across the second half of fiscal 2025 and into fiscal years 2026 and 2027.

In other recent news, Dave & Buster’s reported its second-quarter 2025 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $0.40, significantly below the anticipated $0.95, and revenue of $557 million, slightly under the expected $565 million. UBS responded to these results by lowering its price target for Dave & Buster’s to $25, while maintaining a Neutral rating, citing weak sales trends and depressed margins. Despite these challenges, Jefferies reiterated its Buy rating with a $30 price target, noting that second-quarter same-store sales were in line with investor expectations, though margins missed targets.

BMO Capital also maintained its Outperform rating with a $35 price target, despite the earnings miss. The firm highlighted that the company’s EBITDA was $130 million, falling $12 million short of consensus estimates due to softer sales and non-recurring expenses. These recent developments reflect a mixed outlook for Dave & Buster’s, with varying analyst opinions on the company’s future performance.

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