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Dave & Buster's Sees Sales Trends Improving After Weak Q2, UBS Says

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Dave & Buster's Entertainment (PLAY) expects improving sales trends in fiscal Q3 after a disappointing Q2, UBS Securities said Tuesday in a report.

The company on Monday reported a surprise Q2 loss as revenue missed Wall Street estimates. UBS said a continued focus on cost savings, with about $15 million to be realized over the next 12 months and $30 million in total targeted, should support margin gains over time, UBS said.

UBS expects Q3 same-store sales to decline 1.2%, compared with the 2.9% drop in Q2, and forecasts an EBITDA margin of 11.4%, down from 18.2%.

In the coming quarters, the focus will be on traction against sales plans and an eventual inflection to positive same-store sales, as well as EBITDA growth, free cash flow generation, and capital usage, the report said.

UBS lowered its price target on Dave & Buster's stock to $9 from $12 and maintained its neutral rating.

Price: $6.99, Change: $-1.48, Percent Change: -17.47%

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Veea, NovaGen Sign Term Sheet for Potential $750 Million Combination

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$VEEA
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Contineum Therapeutics Says Phase 2 Major Depressive Disorder Study Fails to Meet Primary Efficacy Endpoint

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Market Chatter: OpenAI Acquires Camera Startup Glass Imaging

Microsoft-backed (MSFT) OpenAI quietly acquired Glass Imaging, a startup developing AI-powered smartphone camera technology aimed at matching DSLR image quality, The Wall Street Journal reported Monday, citing people familiar with the matter.The deal valued Glass Imaging at more than $300 million, some of the people said, according to the report. OpenAI's exact plans for Glass Imaging are not clear, the report added.OpenAI and Glass Imaging did not immediately respond to requests for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $506.92, Change: $+11.29, Percent Change: +2.28%

$MSFT