FMP
Jun 10, 2024 5:11 PM - Davit Kirakosyan
Dave & Buster's (NASDAQ:PLAY) shares fell around 3% intra-day today after UBS analysts reduced their price target for the company to $56 from $66, while maintaining a Neutral rating.
The analysts anticipate that the company's Q1/25 earnings, scheduled for June 12, will reflect ongoing sales pressures. However, they expect that cost-saving measures will support EBITDA. Key investor expectations include a mid-single-digit decline in same-store sales (SSS) for the first quarter, falling below the consensus estimate of a 2.8% decrease. Additionally, many adjusted EBITDA forecasts are below the consensus of $184 million, despite a history of EBITDA beats, and it is anticipated that second-quarter sales trends will remain similarly pressured.
Investors are particularly focused on the sales trajectory and its implications for the second quarter, especially in light of easing comparisons and the rollout of several initiatives. They are also keen on updates regarding plans to bolster sales through remodels, food and beverage enhancements, and pricing adjustments. There is an expectation that the company will reiterate its 2024 development guidance, which includes 15 new units across both brands and up to four international locations.
UBS believes that potential upside exists for Dave & Buster's shares due to the company's unique business model, attractive margins, and effective execution of EBITDA growth opportunities. However, the analysts view the risk/reward balance as even, given the ongoing sales challenges, a difficult macroeconomic environment, and limited visibility into future sales trends.
Jan 16, 2024 4:18 PM - Samuel Abdelshahid
In the hustle and bustle of the trading world, having a trustworthy laptop is like having a reliable partner by your side. Making well-informed decisions and staying ahead of market trends become second nature with the right device. However, the quest for a budget-friendly trading laptop t...
Jan 21, 2024 4:00 AM - Parth Sanghvi
Introduction: In the world of financial analysis, a profound grasp of essential profitability metrics is vital. This blog delves into three pivotal metrics—ROE (Return on Equity), ROA (Return on Assets), and Net Profit Margin—offering clear insights without unnecessary complexity. Exploring RO...
May 14, 2024 11:41 AM - Sanzhi Kobzhan
A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...