On Tuesday, Bowlero Corp. (NYSE: BOWL) experienced a revision in its stock outlook as Roth/MKM maintained a Buy rating but reduced the price target to $15 from $17. The adjustment comes after the company's third-quarter results which did not meet expectations, leading to a lowered forecast for the full year.
The analyst from Roth/MKM expressed disappointment in Bowlero's third-quarter performance, which prompted a more cautious projection for the company's annual financials. Despite these setbacks, there remains optimism for the fourth quarter, anticipated to be a turning point financially. The upcoming quarter is expected to show improved revenue and expense figures, along with gains from recent investments in food and beverage, amusements, and marketing initiatives.
Bowlero's execution in the near term is deemed crucial, especially in the subsequent few quarters, to maintain the confidence of long-term investors. The revised price target of $15 reflects an 11.5 times multiple of the firm's projected adjusted EBITDA for the fiscal year 2025.
The company's focus now lies in leveraging the anticipated fourth-quarter improvements to solidify its growth narrative. The analyst underscores the importance of Bowlero's performance in the near future to sustain support from its long-term investor base.
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