JPMorgan initiated coverage on Bowlero Corp. ( NYSE: BOWL ) with an Overweight rating on its view the bowling center operator has plenty of upside.
Analyst Kevin Heenan and team pointed to Bowlero's ( BOWL ) market leadership and scale in the economically-attractive bowling industry, as well as a balanced multi-year financial profile for ~10% revenue, EBITDA growth, and potential profit upside. In addition, Bowlero ( BOWL ) is noted to have structural model improvement during COVID with tailwinds exiting the pandemic, and experienced, founder-led management.
"BOWL has a decade-plus track record of accretive deals (>300 centers), applying a proven operating model to bridge the gap between its center EBITDAR margin (~50%) and the industry average (~20%). "
JPMorgan assigned a price target of $17 to BOWL to rep more than 50% upside from the closing price on Monday.
Shares of Bowlero ( BOWL ) jumped 5.04% premarket on Tuesday to $11.68
Bowler has a clean sweep of bull ratings on Wall Street, but the Seeking Alpha Quant Rating is only at Hold.
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Bowlero rallies after JPMorgan points to +50% upside