Dave & Buster’s price target raised to $60 from $55 at Loop Capital

Loop Capital analyst Alton Stump raised the firm’s price target on Dave & Buster’s to $60 from $55 and keeps a Buy rating on the shares. The company reported a “mixed” Q3, with adjusted EBITDA of $82M coming in below its $86M estimate but above consensus of $74M, the analyst tells investors in a research note. The firm adds however that stock is currently trading at about 5.5-times on enterprise value to expected FY24 EBITDA estimate, compared to the company’s 5-year average of about 8-times, and given the substantial earnings and EBITDA upside potential in the event sales continuing to recover over the next 12+ months, Dave & Buster’s shares deserve to trade at least closer to the company’s historical forward average.