European Wax Center price target lowered to $16 from $20 at Truist

Truist lowered the firm’s price target on European Wax Center to $16 from $20 but keeps a Buy rating on the shares. The company’s Q3 results missed expectations and the management cut its FY23 revenue guide as macro pressures continue to impact visits from “episodic” guests, while execution issues on media spend drove further headwinds, the analyst tells investors in a research note. Despite the tougher environment however, franchisees continue to generate robust returns with about 60% cash on cash returns by year 5, and its pipeline for new units remains robust, the firm added.