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

Citi analyst Kelly Crago lowered the firm’s price target on European Wax Center to $16 from $19 and keeps a Buy rating on the shares. While the company’s Q1 EBITDA was above consensus, comps of negative 1.2% were below, driven by weather-related store closures, the Easter shift and weaker new guest sales, the analyst tells investors in a research note. The firm acknowledges the “hockey stick” guidance is not ideal, but says Q2 quarter-to-date comps have improved versus Q1, which the company attributes to the benefit of new initiatives taking hold. Citi expects the shares to remain range-bound near-term but believes the risk/reward is favorable.