Analysts Bullish on Dave & Buster’s before Fiscal Q1 Results

Analyst rate the stock as a “buy”

Dave & Buster’s Entertainment (PLAY) is scheduled to report its results for the fiscal first quarter on June 11. Before the upcoming results, all ten analysts covering the stock have rated it as a “buy.” Dave & Buster’s is expected to report revenues of $322.1 million, representing growth of 5.9% on a YoY (year-over-year) basis. However, the company’s adjusted EPS of $0.93 is expected to fall 5.1% in the fiscal first quarter.

Analysts Bullish on Dave & Buster’s before Fiscal Q1 Results

In the past 30 days, there has been just one price revision change. On May 21, Maxim raised its price target on PLAY stock to $68.00 from $62.00 projected earlier. Currently, the analysts’ 12-month average target price for the company is $54.61, which reflects a 22.8% upside to its June 5 closing price.

Dave & Buster’s has implemented strategic measures such as menu improvements and faster service to improve its long-term growth prospects. It’s also adding new game titles, including virtual reality games, to its portfolio to attract more customers. The company is working to make its stores attractive to a range of customers such as sports enthusiasts, the overall 21–34 age demographic, and families.

However, the company is facing rising costs due to ongoing investments, which is expected to dent its margin and EPS performance.

Analysts’ ratings for peers

Of the 26 analysts covering Dunkin’ Brands (DNKN), ~54.0% gave it a “hold” rating and 31.0% gave it a “buy” rating. Currently, analysts’ target price for Dunkin’ Brands is $63.32, reflecting a 2.8% downside to the stock price on June 5.

About 42.0% of the 26 analysts covering Darden Restaurants (DRI) recommended a “hold” rating, while 54.0% rated it as a “buy.” The mean target price for Darden Restaurants is $100.90, which indicates a 13.0% upside to its June 5 stock price.

For Jack in the Box (JACK), ~53.0% of the 17 analysts covering the stock recommended a “hold” rating, while 47.0% rated it as a “buy.” Jack in the Box’s target price is $97.71, implying an 18.0% upside to its June 5 stock price.