European Wax Center price target lowered to $8 from $16 at Truist

Truist lowered the firm’s price target on European Wax Center to $8 from $16 but keeps a Buy rating on the shares. The company’s Q2 results were in-line, but the management sharply lowered its unit growth for FY24 – the main driver of the model – due to deteriorating unit economics stemming primarily from growing pressure on episodic customers, the analyst tells investors in a research note. Truist adds however that European Wax Center is still a highly profitable and cash-generative buisness, stating that while the transition from growth to value is never easy, there is limited downside from the stock’s current levels.