Dave & Buster’s Entertainment (PLAY:NSD) Analysts rate as a Buy, $53 target

STA Research
by: STA Research

Based on the Dave & Buster’s Entertainment stock forecasts from 7 analysts, the average analyst target price for Dave & Buster’s Entertainment is USD 53.33 over the next 12 months. Dave & Buster’s Entertainment’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Dave & Buster’s Entertainment is Slightly Bearish, which is based on 6 positive signals and 9 negative signals. At the last closing, Dave & Buster’s Entertainment’s stock price was USD 41.06. Dave & Buster’s Entertainment’s stock price has changed by +3.17% over the past week, -3.78% over the past month and -10.37% over the last year.

Just recently, Piper Sandler  maintained the Neutral rating on the stock, and raised the target to $44 from $42.

BMO Financial raised the target to $66 from $62, and maintained the Outperform rating.

In North America, Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining establishments that are geared toward both adults and families. Dave & Buster’s is the name under which the company operates its various locations. The current location of the company’s headquarters in Coppell, Texas, dates back to its founding in 1982.

 

What we like:

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns overall.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Overpriced compared to book value

The stock is trading high compared to its peer’s median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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