Dave & Buster’s stock price target lowered to $22 at Truist Securities

Investing.com - Truist Securities lowered its price target on Dave & Buster’s (NASDAQ:PLAY) to $22.00 from $27.00 on Tuesday, while maintaining a Hold rating on the entertainment and dining chain.

The price target reduction follows Dave & Buster’s second-quarter 2025 results, which missed expectations for same-store sales and adjusted EBITDA. Truist noted that the company’s same-store sales decelerated in the latter half of the quarter despite facing easier year-ago comparisons.

According to Truist, growing macroeconomic headwinds have overwhelmed the positive impacts from Dave & Buster’s "back to basics" strategic approach. While the firm sees potential sales drivers in the second half of 2025, it also acknowledges risks that consumer pressures could intensify.

The research firm highlighted that new CEO Tarun Lal is focused on executing much of the company’s prior strategic plan, including testing new remodel and refresh designs in the second half of 2025 and improving marketing with an emphasis on differentiation and value.

Truist does not expect these initiatives to have a meaningful impact on Dave & Buster’s results in the near term, contributing to the more conservative price target.

In other recent news, Dave & Buster’s reported its second-quarter 2025 earnings, revealing a significant shortfall in both earnings per share (EPS) and revenue. The company posted an EPS of $0.40, which was notably below the expected $0.95, marking a 57.89% negative surprise. Revenue was reported at $557 million, slightly missing the anticipated $565 million. Analysts have reacted to these results, with Piper Sandler and UBS both lowering their price targets to $26.00 and $25.00, respectively, while maintaining a Neutral rating. Jefferies, however, reiterated its Buy rating with a $30.00 price target, despite acknowledging a slower start to the third quarter. BMO Capital also maintained its Outperform rating and a $35.00 price target, despite the earnings miss. The company faced challenges with same-store sales declining by 3.0%, slightly worse than the expected 2.3% drop. Additionally, the company reported depressed margins, attributed to a challenging macroeconomic environment and brand-specific issues.

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