Bowlero Corp. Class A (BOWL – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Eric Wold from B.Riley Financial reiterated a Buy rating on the stock and has a $19.00 price target.
Eric Wold’s rating is based on a combination of factors that suggest a positive outlook for Bowlero Corp. Class A. Despite recent share declines amid broader market concerns and seasonal slowdowns, Wold believes Bowlero’s management has effectively enhanced marketing efforts to increase midweek attendance and maintain steady same-store sales. This consistency in revenue, paired with the company’s strategic expansion through new builds and market consolidation, underpins the Buy recommendation. Additionally, Wold views Bowlero’s use of sale-leaseback transaction proceeds to accelerate share repurchases as a prudent utilization of resources, given the company’s attractive valuation. The reaffirmation of the Buy rating and a price target of $19 is a testament to these strategic initiatives.
Wold’s confidence in maintaining his 3Q24 estimates for Bowlero Corp.—aligned with consensus estimates—speaks to his expectation of stabilizing sales trends and the company’s ability to navigate inflationary pressures. The re-introduction of a revised Summer Season Pass, at a higher price point, is anticipated to bolster revenues in traditionally lower attendance periods, further supporting the company’s financial prospects. Moreover, a shift in focus towards leveraging the undervalued stock through buybacks, instead of acquisitions, suggests a tactical approach by management to enhance shareholder value. This strategic re-prioritization, alongside the company’s dominant position in the bowling center market, solidifies Wold’s Buy rating for Bowlero Corp. Class A.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $19.00 price target.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BOWL in relation to earlier this year.
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Bowlero Corp. Class A (BOWL) Company Description:
Isos Acquisition Corp is a blank check company.
