Telsey Advisory downgraded European Wax Center (EWCZ) to Market Perform from Outperform with a price target of $6, down from $8. The firm says that after a year of “disappointing” results, marked by sluggish guest acquisition and ticket trends, European Wax reduced its fiscal 2025 net new center opening expectations for a second consecutive period in Q3. The analyst is now more cautious over the company’s ability to attract new guests and further expand its footprint, which are key drivers of its prior growth algorithm. In addition, the company recently shelved its laser-hair removal pilot program, the analyst tells investors in a research note. Telsey believes European Wax’s strategic direction is in a state of transition, with clouded visibility to a timeline or strategy for improvement.
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