Jefferies: We'll Continue To Play At PLAY!
In a report published Wednesday, Jefferies analysts maintained a Buy rating for Dave & Buster's Entertainment, Inc (NASDAQ: PLAY), while raising the price target from $33 to $39.
The company has preannounced strong same-store-sales of 10.5 percent for 4Q. This was significantly higher than the +4 percent SSS anticipated by the analysts. The company's revenues and operating income were also substantially higher than the original estimates.
In the report Jefferies noted, "Although the transformation of D&B Sports is clearly helping, the company’s holistic approach with Eat, Drink, Play and Watch is creating incremental visits and driving strong sss. Amusements (with 3 exclusive new games and ads on Nickelodeon focused on the younger family audience during the holiday break) were the fastest comping category."
The company indicated that it expects the robust momentum to continuing into the first quarter and has guided to solid results in 2015. The EPS estimates for 2015 and 2016 have been raised from $0.82 to $0.91 and from $0.99 to $1.11, respectively.
The upward revision in price target implies "a well-deserved (and still possibly conservative) 11x our raised '16 EBITDA," the analysts said, while adding, "We continue to like the drivers and growth at PLAY with a valuation that can expand."
Latest Ratings for PLAY
|Dec 2016||SunTrust Robinson Humphrey||Initiates Coverage On||Buy|
|Oct 2016||Wells Fargo||Initiates Coverage On||Outperform|
|Aug 2016||Canaccord Genuity||Initiates Coverage on||Buy|
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