On Friday, Bowlero Corp. (NYSE:BOWL) maintained a positive outlook as an analyst from B.Riley upheld a Buy rating with a $17.00 price target on the company's stock. The analyst's endorsement followed Bowlero's announcement of robust fourth-quarter results for the fiscal year 2024, which were attributed to an increase in same-store sales. These gains were driven by effective strategies to enhance customer traffic during the typically slower summer months.
The company's successful initiatives to drive more visitors to its bowling centers have led to a positive trajectory in same-store sales. In addition, Bowlero's management is planning to capitalize on the demand for season pass offerings, which is expected to be favorable in the current economic climate. The company has also demonstrated strong operating leverage as a result of increased bowling center traffic.
Management has expressed confidence in maintaining the momentum of same-store sales growth into the fiscal year 2025. They also emphasized the potential for both organic and inorganic growth opportunities that could be supported by the company's improving cash flows. These factors have contributed to the analyst's decision to reiterate the Buy rating and price target for Bowlero's shares.
B.Riley's analysis further led to a slight increase in the firm's fiscal year 2025 and 2026 earnings estimates for Bowlero Corp. The analyst's commentary highlighted the company's strategic efforts and the expected benefits from its ability to attract and retain customers, which are anticipated to support continued financial growth and shareholder value.
In other recent news, Bowlero Corp has been the subject of positive analyst attention. Stifel, Oppenheimer, and Roth/MKM have all maintained their favorable ratings on the company. Stifel has set a price target of $17.00, while both Oppenheimer and Roth/MKM have set targets of $15.00. The analysts highlighted Bowlero's projected same-store sales growth, its expansion efforts, and its strong fiscal position as key factors in their positive assessments.
Bowlero is set to announce its fiscal fourth-quarter 2024 results soon, with Oppenheimer expecting the results to align with projections and a same-store sales growth of approximately 4.5%. This is in contrast to other industry players that are expected to report a decline. The company has also recently expanded its revolving credit facility by $50 million, bringing the total to $335 million with JPMorgan Chase (NYSE:JPM) Bank.
The company's Summer Season Pass program has seen record sales exceeding $6 million, and Bowlero has also been actively expanding, adding 23 new locations this fiscal year. The acquisition of Raging Waves, Illinois' largest water park, has been viewed positively by Noble Capital.
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