Dave & Buster's Target Lifted as Vaccine Enables Stores to Reopen

Raymond James analyst Brian Vaccaro lifted his target on Dave & Buster's stock and says the chain might enter a sports-betting partnership
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Dave & Buster’s  (PLAY) - Get Report shares rose Wednesday after Raymond James raised its share-price target to a Wall Street high and kept its strong-buy rating for the entertainment/restaurant chain amid solid sales.

Raymond James analyst Brian Vaccaro lifted the price target to $55 from $45, Bloomberg reported.

The stock recently traded at $44.67, up 4.6%. It has nearly tripled over the past six months as investors have grown enthusiastic about the distribution of COVID vaccines and the prospect of economic recovery.

As for the sales, Dave & Buster's has shown "solid sequential improvement" since late February, Vaccaro said, according to The Fly. 

He expects further strong increases in sales during the next few months, as California and New York permit indoor entertainment and amusement centers to open their doors again.

Analysts will likely revise fourth-quarter estimates modestly higher, Vaccaro said, according to Bloomberg. The company may have a sports-betting partnership up its sleeve, which could be a “positive catalyst” for the stock, he said.

Dave & Buster’s started a big rise in early November, amid positive news about the vaccines.

Another restaurant stock that has fared well during the pandemic is Chipotle,  (CMG) - Get Report  which has more than doubled over the past year.

Earlier this month, the burrito chain's shares climbed after the fast-food icon said it was introducing customizable quesadillas to its digital-only menu starting March 11.

And perhaps more important, Goldman Sachs analyst Jared Garber called Chipotle’s recent decline a buying opportunity and affirmed his buy rating. The stock also remains on Goldman’s Conviction List. Garber did trim his target price, to $1,725 from $1,750.

The shares last check were 1.1% lower at $1,434.70.