Piper Sandler upgrades European Wax Center to Overweight, raises target to $22

As previously reported, Piper Sandler upgraded European Wax Center to Overweight from Neutral with a price target of $22, up from $19, given improved comfort around overall guest health amidst the current macro environment and a deep dive on the laser hair removal industry and opportunity. The firm notes that it has now seen several quarters of consistent execution from management, and while there does remain a subset of guests who are showing macro sensitivity, this seems to have stabilized. Additionally, Wax Pass guests and the new center pipeline remain strong, giving Piper greater visibility into both the top line and margin trajectory. Add in a “very compelling opportunity” in laser hair removal, and the firm sees the upside reward as far outweighing the downside risk for shares at current levels.