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Investing.com - Truist Securities has lowered its price target on Dave & Buster’s (NASDAQ:PLAY) to $27.00 from $29.00 while maintaining a Hold rating on the stock.
The firm expects Dave & Buster’s to miss second-quarter 2025 sales and adjusted EBITDA estimates when it reports results, likely during the week of September 8.
According to Truist’s analysis, same-store sales improvements observed early in the second quarter appeared to weaken toward the end of the quarter and into the third quarter, with no clear near-term sales catalysts visible.
The firm’s research indicated significant changes to chip pricing in approximately 75% of Dave & Buster’s locations, including an estimated mid-single-digit percentage decline in prices, which may temporarily drag on same-store sales but potentially boost sales in the long term.
Truist views the July 14, 2025, appointment of Tarun Lal as CEO positively but does not anticipate material additions or changes to the company’s strategic plans for at least two to three quarters.
In other recent news, Dave & Buster’s reported first-quarter results that did not meet analyst expectations, with adjusted earnings per share at $0.76, falling short of the projected $1.01. The company’s revenue also came in below expectations at $567.7 million, a decrease from the $573.25 million forecast and a drop of 3.5% compared to $588.1 million in the previous year. Meanwhile, Texas Capital Securities initiated coverage of Dave & Buster’s stock with a Buy rating and set a price target of $48.00, expressing optimism about the company’s turnaround efforts under new management. Truist Securities maintained a Hold rating with a $29.00 price target, highlighting competitive pressures as a significant challenge. Loop Capital reiterated its Buy rating, citing substantial EBITDA upside potential and a price target of $46.00, showing confidence in the "Back to Basics" initiative. Additionally, Dave & Buster’s promoted Les Lehner to Chief Development Officer, succeeding John Mulleady, who will retire later this year. These developments indicate a mix of challenges and strategic changes for the company.
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