$PLAY Truist analyst Jake Bartlett said he views the 12% decline in Dave & Buster's shares as a "severe overreaction" to a Wall Street Journal article referencing the company's previous disclosure in its Q2 10-Q that if it is not in compliance with its debt covenants that lenders could force a Chapter 11 bankruptcy. The analyst, who continues to assume the company's lenders will grant its covenant relief again, especially given visibility into recovering EBITDA, noted that the language in the recent 10-Q is identical to the disclosure made in Q1. He calls the pullback on the "unfounded" bankruptcy concerns a buying opportunity and keeps a Buy rating with a $22 price target on Dave & Buster's shares.
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