Westpark Capital Reaffirms Their Buy Rating on RCI Hospitality Holdings

By Jason Carr

Westpark Capital analyst Ishfaque Faruk maintained a Buy rating on RCI Hospitality Holdings (NASDAQ: RICK) today and set a price target of $34. The company’s shares opened today at $28.61.

Faruk observed:

“We view these developments favorably as they will enable RICK to drive its business higher. For F’18, we are estimating the company’s Earnings per share will grow to $2.05. We maintain our Outperform rating and $34 PT. Continued growth in the Entertainment segment. RICK announced preliminary results for 2QF’18, with its total revenues from Club and Restaurants sales up 19.7% to $40.8 million. These results exclude the sales from its Media and Merchandise sales segments. These results were ahead of our revenue estimate of $39.7 million for the quarter. The company’s same store sales during the quarter were up 4.8% Y/Y to $35.3 million. Sales for the company was robust across the board. Nightclub total sales increased 19% to $35.2 million as the company had 38 units open during the quarter (vs 37 in 2QF’17). Management attributed the increase of $5.4 million in revenues primarily to Scarlett’s Cabaret Miami.”

Faruk has an average return of 22.6% when recommending RCI Hospitality Holdings.

According to TipRanks.com, Faruk is ranked #4601 out of 4767 analysts.

RCI Hospitality Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $34.

Based on RCI Hospitality Holdings’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $41.21 million and quarterly net profit of $14.31 million. In comparison, last year the company earned revenue of $34.52 million and had a net profit of $3.76 million.

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RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the ownership and operation of adult nightclubs, sports bars/restaurants, and media. It operates through the following business segments: Nightclubs, Bombshells, and Other. The Nightclubs segment operates adult nightclubs serving primarily businessmen and professionals.