Here's Why Telsey Downgraded Enjoy Technology

Telsey analyst Dana Telsey downgraded Enjoy Technology Inc ENJY to Market Perform from Outperform and reduced the price target to $4.00 from $6.00, implying a 22% upside.
The analyst noted that the visibility of Enjoy's near-term business trends is clouded due to ongoing inventory constraints and pressure on profitability related to continued investments in mobile stores, technology, and labor.
Telsey specified the company had missed the Street view over the past two quarters, primarily due to inventory shortages, frequency of daily visits, and weakness in Europe.
The analyst added that the recent departure of CFO Fareed Khan could create some near-term challenges.
Related: Enjoy Technology's Finance Head Steps Down
Price Action: ENJY shares are trading lower by 3.54% at $3.27 on the last check Tuesday.