Texas Capital Securities initiates Dave & Buster’s stock with Buy rating

Published 09/07/2025, 21:56
Texas Capital Securities initiates Dave & Buster’s stock with Buy rating

Investing.com - Texas Capital Securities initiated coverage on Dave & Buster’s (NASDAQ:PLAY) with a Buy rating and a $48.00 price target on Wednesday.

The firm cited optimism about the entertainment company’s turnaround efforts under new management, following a period of declining same-store sales between 2023 and early 2025.

Texas Capital Securities noted that Dave & Buster’s previously struggled with poor store-level attendance and sales, attributing these challenges to a value-focused consumer economy and unsuccessful strategic initiatives from previous management.

The research firm expressed confidence in the company’s "back to basics focus" approach, which it believes has potential to appeal to Dave & Buster’s target entertainment-seeking customer base while expanding its network more efficiently.

Despite some recovery in the stock price from recent lows, Texas Capital Securities stated that the current valuation multiple does not fully reflect the opportunity ahead as same-store sales are expected to improve heading into 2026.

In other recent news, Dave & Buster’s reported its fiscal first-quarter results, which showed a decline in revenue to $567.7 million, missing the expected $573.25 million. The company’s adjusted earnings per share also fell short of projections at $0.76, compared to the anticipated $1.01. Despite this, Loop Capital expressed optimism about the company’s "Back to Basics" initiative, maintaining a buy rating and increasing the price target to $46. UBS also raised its price target to $29, citing early progress in strategic plans, though it maintained a neutral rating. Truist Securities kept a hold rating with a $29 price target, noting ongoing competitive pressures. Additionally, Dave & Buster’s announced the promotion of Les Lehner to Chief Development Officer, succeeding John Mulleady, who will retire later this year. The company plans to open approximately 40 new stores over the next three years. Analysts from Piper Sandler and BMO also adjusted their price targets, reflecting the company’s strategic initiatives and improving sales trends.

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