European Wax Center price target lowered to $5 from $14 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on European Wax Center to $5 from $14 and keeps an Equal Weight rating on the shares. Below-algorithm unit expansion and initiatives to reinvigorate sales will prolong “normal” growth to 2025/2026, the analyst tells investors in a research note. While the stock is pricing in meaningful negativity, revitalization and growth efforts will take time to materialize and there is risk in the medium-term that the growth rate of the business will not return to what it once was, the firm says.