2023-04-19 07:37:10 ET
Bowlero ( NYSE: BOWL ) shares were boosted on Wednesday by a bullish evaluation authored by Jefferies.
Equity analyst Randal Konik told clients that the company is attractively positioned in “the highly fragmented bowling industry” with an opportunity to consolidate the industry via M&A activity. He noted that there are 3,500 independently operated bowling centers in the US, making for a rich pool of acquisition candidates. Meanwhile, international expansion adds another layer of opportunity, in Konik’s view.
“We believe Bowlero's strong brand, large and growing center footprint, and leading entertainment experience are likely to further bolster its competitive positioning in the large and highly fragmented bowling industry, driving margin expansion and substantial FCF generation over time,” Konik concluded. “With short interest at ~10% of the float and BOWL trading below its historical valuation, we expect meaningful stock price appreciation for BOWL.”
He assigned the stock a $23 price target alongside the Buy initiation. Shares of Bowlero ( BOWL ) rose 1.91% in premarket trading on Wednesday.
Read more on Stifel’s recent Buy initiation .
For further details see:
Bowlero initiated at Buy as Jefferies eyes attractive valuation, growth trajectory