Kura Sushi price target lowered to $64 from $72 at Lake Street

Lake Street lowered the firm’s price target on Kura Sushi to $64 from $72 and keeps a Hold rating on the shares. Kura reported Q3 results that were in line with preliminary results and reiterated its FY24 sales guidance range, but the firm thinks the guidance implies Q4 results “are a bigger issue” than Q3 results. Management noted its belief that the sales pressure is transitory, but the firm thinks the implied Q4 sales guidance shows that weakness likely continues for the next several months and thinks a mix of opening costs along with weak consumer spending hurt results in Q3 and will likely continue to impede results in Q4 and into FY25, the analyst tells investors.