Jefferies analyst Andy Barish notes that Dave & Buster’s Q2 same-store sales decline of 6.3% was below the consensus call for a 3.3% decline, but thinks it was in line with the buy-side calling for comps to be down by a mid-single digit percentage. The firm, which notes August trends improved sequentially and expects more contribution from various same-store sales growth initiatives to build at a modest pace in the second half, lowered its Q3 and Q4 SSS estimates from flat and up 1.0% to down 4% and down 2%, respectively. The firm, which contends that the stock valuation “appears washed out” and views the long-term opportunity as “underappreciated,” keeps a Buy rating and $60 price target on Dave & Buster’s shares.
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