Should I Buy PLAY? PLAY 2026 Analysis

Should You Buy Dave & Buster's Entertainment Inc (PLAY) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

18.830

1 Day change

-2.03%

52 Week Range

35.530

Analysis Updated At

2026/01/26

Dave & Buster's Entertainment Inc (PLAY) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock has positive momentum in pre-market trading, hedge fund interest is increasing significantly, and analysts have recently upgraded the stock with a higher price target. While there are some concerns about macroeconomic pressures, the company's financial performance shows improvement in key metrics like net income and EPS, and the stock is trading near a key support level, offering a favorable entry point.

Technical Analysis

The MACD is positive and contracting, indicating bullish momentum. RSI is neutral at 74.194, suggesting no overbought or oversold conditions. Moving averages are converging, and the stock is trading near a pivot level of 19.369, with resistance at 21.444 and support at 17.295. These indicators suggest a potential upward trend.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The low put-call ratios indicate bullish sentiment in the options market, with more interest in calls compared to puts. Implied volatility is high at 97.89, suggesting strong market expectations for price movement.

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds are significantly increasing their positions, with a 139.12% increase in buying activity.
Analysts have upgraded the stock to 'Buy' with a $30 price target, citing improved execution and promotional strategies.
The company's net income and EPS have shown significant YoY improvement, indicating better profitability.

Neutral/Negative Catalysts

Revenue declined slightly YoY by -1.06%, and gross margin dropped by -1.85%.
Analysts have noted macroeconomic pressures, including slowing job growth and consumer confidence, which may impact the restaurant sector.
Insider trading activity is neutral, showing no significant trends.

Financial Performance

In Q3 2026, revenue dropped slightly to $448.2M (-1.06% YoY), but net income improved significantly to -$42.1M (+28.75% YoY). EPS also increased to -1.22 (+45.24% YoY). Gross margin declined slightly to 71.78% (-1.85% YoY). Overall, the financials show mixed results but highlight improvements in profitability metrics.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent analyst activity includes an upgrade by Benchmark to 'Buy' with a $30 price target, citing improved execution and promotional strategies. However, Truist and UBS have lowered their price targets, citing macroeconomic concerns. The overall sentiment leans positive, with optimism about the company's strategic initiatives and potential for growth.

7 Analyst Rating

Wall Street analysts forecast PLAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLAY is 22.2 USD with a low forecast of 16 USD and a high forecast of 30 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

5 Hold

0 Sell

Moderate Buy

Current: 19.220

Low

Averages

22.2

High

Current: 19.220

Low

Averages

22.2

High

Benchmark

Hold

Buy

upgrade

$30

AI Analysis

2026-01-16

Reason

Benchmark

Price Target

$30

AI Analysis

2026-01-16

upgrade

Hold

Buy

Reason

As previously reported, Benchmark upgraded Dave & Buster's to Buy from Hold with a $30 price target as the firm sees "a credible setup" for positive same-store sales in Q1, which it notes would represent the first same-store sales inflection in roughly 13 quarters. The firm's conviction is driven by improving food and beverage execution and incremental traffic from the expanded Half Price Games promotion that launched on January 4, the analyst tells investors.

Benchmark

Mike Hickey

Hold

Buy

upgrade

$30

2026-01-16

Reason

Benchmark

Mike Hickey

Price Target

$30

2026-01-16

upgrade

Hold

Buy

Reason

Benchmark analyst Mike Hickey upgraded Dave & Buster's to Buy from Hold with a $30 price target.

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PLAY Should I Buy

PLAY Should I Buy

Should You Buy Dave & Buster's Entertainment Inc (PLAY) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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