11:05 AM EDT, 09/11/2024 (MT Newswires) -- Dave & Buster's Entertainment (PLAY) has managed to show margin upside in Q2 amid its struggle with same-store sales, Truist said in a Tuesday note.

"PLAY's strong 2Q24 margin performance also renews our confidence in its ability to at least partially offset the impact of near-term SSS pressure with operating cost efficiencies, supporting cash flow and its ability to fund its growth plan," Truist said.

The report said the company's sales strategies will start to counterbalance broader economic challenges, with a building impact of remodels, a more focused marketing campaign during football season and significant special events sales driver.

Truist projects a modest SSS recovery to -5.0% in Q3 and -3.0% in Q4, with SSS turning positive in Q1 2025. It raised its 2024 and 2025 adjusted EBITDA forecasts to $526.8 million and $586.6 million, respectively, from $517.7 million and $583 million.

Truist kept its buy rating and $59 price target on the stock.

Price: 30.25, Change: +0.39, Percent Change: +1.30