Dave & Buster's Gets Post-Earnings Upgrades From Analysts
At least two analysts have put additional coins in the slot at Dave & Buster's Entertainment (PLAY) - Get Report.
Both Stifel and Deutsche Bank upgraded the the food and entertainment chain on Friday, despite a dismal quarter that saw both sales and earnings plunge amid the coronavirus pandemic and its ongoing impact on the high-touch restaurant and entertainment business.
Stifel analyst Chris O'Cull raised his one-year price target on Dave & Buster's to $18 from $15 after the Dallas-based food and entertainment chain posted a fiscal second-quarter loss of $58.6 million, or $1.24 a share, vs. net income of $32.4 million, or 90 cents a share, a year earlier.
Sales plummeted 85% to $50.8 million from $344.6 million a year ago. Analysts polled by FactSet had been expecting per-share earnings of $1.40 on sales of $78.5 million.
Deutsche Bank analyst Brian Mullan raised his price target on Dave & Buster's to $30 from $28 following what he called a “largely positive" earnings call in which management clarified that its stores are "firmly cash flow positive at the unit level."
Both Mullan and O’Cull held their respective ratings - Mullan at a buy, and O’Cull at a hold - amid uncertainty on when and how consumers return to large group gatherings in "high-touch spaces" like Dave & Buster’s.
