Dave & Buster’s price target lowered to $55 from $66 at BMO Capital

BMO Capital analyst Andrew Strelzik lowered the firm’s price target on Dave & Buster’s to $55 from $66 but keeps an Outperform rating on the shares. The company’s Q3 EBITDA outpaced consensus thanks to stronger comps, but quarter-to-date trends have slowed, creating a potential overhang on the stock, the analyst tells investors in a research note. Strelzik adds however that the risk/reward skew on Dave & Buster’s is "meaningfully to upside" even on heavily tempered assumptions, and he remains encouraged by the potential for the its new strategic approach to drive stronger earnings.