European Wax Center price target lowered to $16 from $19 at BofA

BofA lowered the firm’s price target on European Wax Center to $16 from $19 and keeps a Buy rating on the shares. Following Q1 results, the firm is lowering its FY24 adjusted EBITDA estimate by 4% on slightly lower comps and lowering its multiple to reflect a narrower premium to the group given the challenged comp environment. However, the firm argues that European Wax Center’s less discretionary service offering, recurring revenue model, and strong unit growth “make it a compelling stock.”