By Exec Edge Editorial Staff
Leading bowling center Bowlero Corp. (NYSE: BOWL) earned its second analyst endorsement in recent weeks as Oppenheimer initiated coverage with a “Buy” rating and a $16 a share price target, indicating 25% upside from current levels.
“BOWL boasts impressive unit economics and industry-leading margins,” Oppenheimer analysts Ian Zaffino, CFA and Isaac Sellhausen wrote in a note to clients. “Bowling has almost no variable cost and very limited labor exposure. This, coupled with the company’s proprietary QMS operating system, yields margins and economics that are significantly higher than other experiential peers, including Vail, Topgolf, Live Nation, and Dave & Buster’s. BOWL’s center-level margins are ~40%/50% for EBITDA/EBITDAR.”
The upgrade comes just a few weeks after JP Morgan Chase & Co. analyst Kevin Heenan gave a $17 price target. Bowlero, which is highly profitable, is a standout among an otherwise dismal market for recent IPO companies.
Bowlero has had an impressive record as a listed company, delivering strong results that attracted wide investor attention.
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