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Dave & Buster's stock soars more than 18% again after CEO said a rerating to peer-group valuations could see the price double

Shares of Dave & Buster's Entertainment Inc. (PLAY) scored an 18.8% rally toward a 13-month high in afternoon trading Tuesday, after the entertainment and dining venue operator laid out its plan to boost earnings, including modernizing its marketing strategy, raising prices on games, improve its food offerings and grow its special events business. The rally comes less than a week after it ran up 18.3% on June 7 on the back of a better-than-expected fiscal first-quarter profit report. Chief Executive Chris Morris said at the company's investor day Tuesday that the stock trades at a "steep discount" to the shares of its peers. "A rerating of our multiple to any of these peer groups presents an upside of well over 100%, Morris said, according to an AlphaSense transcript. "In summary, we see many avenues to unlock this equity value and a tremendous amount of upside when our future financial performance works in tandem with the market's perception of us," Morris added. The stock has hiked up 29.5% year to date, while the S&P 500 has advanced 13.9%.

-Tomi Kilgore

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06-13-23 1344ET

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