Missed the webinar? Here are Investing.com’s top 10 stock picks for 2026
Investing.com - Freedom Capital Markets initiated coverage on Dave & Buster’s (NASDAQ:PLAY) with a Hold rating and a $16.00 price target on Wednesday.
The entertainment and dining venue operator faces challenges with same-store sales and traffic, which Freedom Capital Markets expects to remain soft in the coming months. This aligns with the company’s concerning revenue decline of 4.46% over the last twelve months.
The research firm acknowledged recent leadership changes at Dave & Buster’s and noted several new initiatives are planned for the near term.
Freedom Capital Markets pointed to the low frequency of guest visits—typically only one to two times per year—as a factor that will likely slow the company’s ability to improve comparable sales. This challenge is reflected in the stock’s steep decline, having fallen over 63% in the past year.
The firm indicated it expects Dave & Buster’s stock to trade sideways in the near term and is waiting for "better visibility on top-line trends" before taking a more positive stance on the stock.
In other recent news, Dave & Buster’s reported disappointing second-quarter 2025 results, missing analyst expectations. The company experienced its tenth consecutive quarter of negative same-store sales, with a decline of 3.0% compared to the anticipated 2.2% drop. Following these results, Truist Securities lowered its price target for Dave & Buster’s to $22.00 from $27.00, maintaining a Hold rating. Piper Sandler also reduced its price target to $26.00 from $30.00, citing weak sales performance. Both Moody’s and S&P Global Ratings downgraded Dave & Buster’s due to concerns over sales declines and financial performance. Moody’s lowered the corporate family rating to B3, while S&P downgraded the company to ’B-’ based on ongoing sales challenges and financial pressures. The ratings reflect the company’s struggles with reduced demand and high capital expenditure requirements. Benchmark reiterated its Hold rating on the stock despite the disappointing quarterly performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.