BofA lowered the firm’s price target on European Wax Center to $8 from $16 and keeps a Buy rating on the shares. Management cut FY24 guidance and is now forecasting FY24 comps down 1.5% to up 0.5% and adjusted EBITDA of $70M-$74M, notes the firm, which is lowering its own FY24 adjusted EBITDA estimate by 6% to $73.6M. The firm is applying a lower multiple to its FY25 EBITDA estimate that now reflects a discount to franchisor and service peers to reflect less visibility around center openings, the analyst tells investors.
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