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Pro Analysis

Buy Dave & Buster’s because it has the ‘most insulated’ business from Amazon: Analyst

Customers play skee ball at a Dave & Buster's Entertainment location in Pelham, New York.
Timothy Fadek | Bloomberg | Getty Images
Customers play skee ball at a Dave & Buster's Entertainment location in Pelham, New York.

If there's one thing Dave & Buster's has going for it, it's not competing directly with Amazon, says BMO Capital Markets, which reiterated its outperform rating on shares of the entertainment restaurant chain.

Dave & Buster's has "the strongest competitive moat in our coverage, including insulation from Amazon. Amid a highly competitive restaurant industry environment, we believe PLAY is among the most insulated companies in our coverage as its amusements business provides true brand differentiation," analyst Andrew Strelzik wrote in a note to clients Wednesday.

"Although we recognize the near-term comp concerns, PLAY's long-term outlook remains entirely unchanged."