NEW YORK (TheStreet) -- Shares of Dave & Buster's (PLAY) - Get Report were gaining in late-afternoon trading on Friday as BMO Capital Markets said the stock's nearly 20% pullback in the last month creates an "attractive entry point."
The firm has an "outperform" rating and $48 price target on the Dallas-based restaurant and entertainment company.
"We believe PLAY is among the best ways to position in the current restaurant environment given its amusement-led business model, while also offering compelling near- and long-term growth potential and opportunities created by strong cash generation at a valuation misaligned with its growth profile," BMO wrote in an analyst note.
Dave & Buster's accelerating same-store sales momentum could continue through year's end, the firm noted.
The company recently highlighted greater competitive pressures, but BMO does not believe much traffic loss will occur.
Additionally, Dave & Buster could see further margin growth over time as a result of smaller cost savings opportunities, according to the firm.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Dave & Buster's as a Hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, the team finds that the company's profit margins have been poor overall.
You can view the full analysis from the report here: PLAY