Dave & Buster's Entertainment (PLAY) stock is soaring 5.16% in intraday trading, demonstrating a remarkable rebound despite mixed full-year 2025 results and a lowered price target from BMO Capital. This surge comes as a surprise to many investors, given the company's recent financial performance and analyst actions.

The entertainment and dining chain reported its full-year 2025 results, which showed a revenue of $2.13 billion, in line with analyst estimates but down 3.3% from the previous year. However, the company's earnings per share (EPS) of $1.49 missed analyst expectations by 22%, representing a significant drop from $2.94 in fiscal year 2024. Despite these mixed results, investors seem to be focusing on the positives, including the company's ability to meet revenue expectations in a challenging environment.

Adding to the complexity of the situation, BMO Capital maintained its Outperform rating on Dave & Buster's stock while simultaneously cutting its price target from $47 to $30. This action suggests that while the firm sees potential in the company, it has adjusted its valuation based on current market conditions and the company's performance. The maintenance of the Outperform rating, despite the lowered price target, may be contributing to investor optimism. Additionally, the stock's recent 11% drop over the past week might have created an attractive entry point for investors, potentially explaining today's surge as bargain hunters move in.