BMO Capital lowered the firm’s price target on Dave & Buster’s to $47 from $51 but keeps an Outperform rating on the shares. The company’s Q3 EBITDA missed estimates amid softer comps and weaker margins, partly influenced by calendar shift and weather, and the firm’s reduced price target is reflecting incremental comp pressures and greater uncertainty given CEO departure, the analyst tells investors in a research note. BMO adds however that it sees favorable risk-to-reward at its current 5.3-times EBITDA multiple and expects initiatives to drive comp improvement in FY25.
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