BMO Capital reduced Dave & Buster’s target following a $14 million EBITDA shortfall in Q1 due to weak sales trends.
BMO Capital lowered its price target for Dave & Buster’s Entertainment (NASDAQ:PLAY) to $22 from $24 after the company’s Q1 EBITDA fell $14 million short of expectations. The miss stemmed from muted comparable sales and sales de-leverage, though management noted modestly improved trends quarter-to-date.
Prior to the cut, BMO had maintained an Outperform rating, citing PLAY’s attractive risk-reward profile and plans to reallocate capex from expansion to reinvestment. UBS also trimmed its target to $12 from $13 on the same day, keeping a Neutral rating despite macro headwinds.
Management remains optimistic about same-store sales recovery through 2026, driven by marketing and innovation initiatives.