Texas Capital cuts Lucky Strike Entertainment stock price target on weak Q4 results

Texas Capital Securities has reduced its price target for Lucky Strike Entertainment (LUCK) stock to $10 from $11, while keeping a Buy rating. The firm expressed disappointment with the company's fourth-quarter fiscal 2026 results, which fell short of expectations on both revenue and adjusted EBITDA. Lucky Strike Entertainment generated $1.24 billion in revenue over the past year, but remained unprofitable with an EPS of -$0.66.

The firm noted that the company's performance was negatively impacted by World Cup matches in June and adverse weather conditions, such as storms in January and February, as well as a slow start to the water park season. Despite these challenges, Texas Capital remains optimistic about the underlying demand for the company's offerings, particularly with event demand providing a positive boost.

Management anticipates positive free cash flow generation and plans to keep capital expenditure spending low while working towards debt reduction. The stock currently trades at $6.25, which is slightly below InvestingPro's estimated Fair Value.