Dave & Buster's suffers PT cuts after Q2 miss, shares fall

Dave and Busters Entertainment,

07/09/2023 13:22

** Shares of Dave & Buster's Entertainment  PLAY.O  down ~5%
at $35.50 before the bell 
    ** Stock set to decline for third consecutive session, if
premarket losses hold
    ** The entertainment and restaurant chain operator, after
hours on Wednesday, missed Wall Street estimates for Q2 results
    ** Co posts Q2 revenue of $542.1 mln, up 15.7% from a year
earlier, but below estimates of $559 mln, according to LSEG data
    ** EPS of 60 cents misses est. of 93 cents
    ** At least five brokerages trim PTs on PLAY, with Raymond
James downgrading stock to "outperform" from "strong buy"
    ** While bullish on PLAY's turnaround in 2024, Raymond James
analyst cuts PT on stock to $55 from $60 citing weaker near-term
sales
    ** Near-term trends are likely to be hard to forecast given
macro headwinds, uncertainty around looming resumption of
student loan repayments, and difficult year-ago comparisons -
brokerage William Blair
    ** Eight of 10 brokerages rate the stock "buy" or higher,
and two "hold"; their median PT is $55 - LSEG data
    ** As of last close, stock up ~6% YTD 

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com))