European Wax Center price target lowered to $18 from $23 at Telsey Advisory

Telsey Advisory lowered the firm’s price target on European Wax Center to $18 from $23 and keeps an Outperform rating on the shares following the Q3 sales shortfall and moderation in transaction trends throughout the quarter. While the firm continues to see long-term growth potential given the company’s large white space potential for future unit expansion and a capital efficient, asset-light model with the demonstrated ability to generate consistent significant free cash flow, the price target is being reduced on moderated estimates and a more cautious macro outlook, the analyst tells investors in a research note.