Analyst Eric Wold of B.Riley Financial reiterated a Buy rating on Bowlero Corp. Class A (BOWL – Research Report), with a price target of $18.00.
Eric Wold has given his Buy rating to Bowlero Corp. Class A due to a combination of factors. First, despite initial results for Q1 2024 coming in slightly below expectations, due to a tough comparison with the previous year and some promotional testing during a slower season, same-store sales have shown positive trends since mid-October. This, along with the company’s robust acquisition and new build pipeline, gives Wold confidence in the outlook for baseline center revenues and an expansion of AEBITDA in the upcoming years.
Secondly, while the company’s management continues to predict Q2 2024 same-store sales to be slightly up or down, they noted that a full suite of midweek promotional offerings were not implemented until mid-October, with same-store sales turning positive ahead of this timing. Management also anticipates an improvement in per guest spending into Q2/Q3 2024, particularly in midweek attachment rates during the winter months. Additionally, management reaffirmed the FY24 guidance, predicting revenue growth of 10%-15% and an AEBITDA margin of 32%-34%. Given these factors, Wold reiterated his Buy rating and $18 PT for the company.
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Bowlero Corp. Class A (BOWL) Company Description:
Isos Acquisition Corp is a blank check company.
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