Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Thursday, Raymond (NSE:RYMD) James analysts reiterated their Market Perform rating for Dave & Buster’s stock (NASDAQ: PLAY). The analysts have adjusted their financial estimates for the company, anticipating lower performance ahead of the company’s fiscal first-quarter earnings release, which is scheduled for Tuesday, June 10.
The analysts have revised their comparable sales estimates, projecting a decline of 8% for the fiscal first quarter compared to a previous estimate of a 6.5% drop. For the fiscal second quarter of 2025, the estimate is now a 4% decline, up from a prior estimate of a 2% decline. For the full fiscal year 2025, the expectation has been adjusted to a 3.8% decrease. These changes are based on third-party traffic data and weak comparable sales trends reported by other similar entertainment and dining concepts recently. The stock has shown significant volatility, falling over 36% in the past six months, though InvestingPro analysis suggests the stock is currently slightly undervalued.
Despite potential cost savings that might offer some protection, the analysts suggest that investor attention will likely remain on the company’s top-line trends and any further modifications to its unit growth plans. This focus is in light of the company’s modest free cash flow, following the reduction of its remodeling plans, and its elevated balance sheet leverage, with net debt to EBITDA around 3.5 times. InvestingPro data reveals concerning metrics, including a debt-to-equity ratio of 23.3x and negative free cash flow yield, confirming the company’s significant debt burden and cash burn rate. Get access to 12 more exclusive ProTips and comprehensive financial analysis in the Pro Research Report.
The analysts also expressed interest in updates regarding Dave & Buster’s ongoing search for a new CEO, which could be a significant development for the company moving forward.
In other recent news, Dave & Buster’s Entertainment, Inc. has faced several notable developments. Moody’s Ratings downgraded the company’s corporate family rating from B1 to B2, citing weak customer traffic and declining consumer confidence. The outlook was also altered from stable to negative, reflecting challenges in improving credit metrics and free cash flow. UBS analyst Dennis Geiger reduced the price target for the company to $18 from $35, maintaining a Neutral rating, as the company works on a "back to basics" strategy amid macroeconomic headwinds. Similarly, BMO Capital Markets adjusted its price target to $30 from $47, while retaining an Outperform rating, noting the company’s fourth-quarter EBITDA missed expectations but saw some operational improvements. Meanwhile, Benchmark analysts maintained a Hold rating, expressing caution despite signs of increased customer traffic and sales. Additionally, Dave & Buster’s announced changes to its Board of Directors, nominating Allen R. Weiss and Nathaniel J. Lipman as new members. These developments come as the company navigates a challenging economic environment and seeks to enhance its operational execution.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.