Shares of Dave & Buster's Entertainment (PLAY) - Get Free Report were rising sharply Friday after the stock was upgraded to buy from hold by analysts at Truist who see the company's recovery progressing.
While the company is still in recovery mode, Truist analyst Jake Bartlett sees it as able to weather potential headwinds.
"We also view PLAY as relatively well positioned to manage cost pressures including labor, due to new operating efficiencies and previously announced hiring initiatives, and food inflation, due to its low costs as a percentage of total sales," Bartlett said.
Shares of Dave & Buster's were rising 5.7% to $38.67 on Friday. Truist assigned a $54 price target to the stock.
Earlier this year, the company was the subject of a price target increase from analysts at Truist who raised their price target to $53 from $46 a share as first-quarter results and current trends showed a "rapid sales recovery" and reflect the company's more efficient operating model.
Dave & Buster's reported fiscal first-quarter revenue of $265.3 million, compared with $159.8 million in the first quarter of 2020 and $363.6 million in the first quarter of 2019.
For the current quarter, analysts are expecting earnings of 55 cents a share on revenue of $355 million.