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Bowling stock Bowlero is a strike for investors, according to Stifel. The firm began its coverage of the bowling company with a buy rating and a $26 per share target price. That equates to more than 70% upside from the stocks’ previous close of $15.20. Shares rose 5% on Tuesday on the back of the note. “What we mean is we believe BOWL sits at the beginning of a compelling growth story with a dominant position in a fragmented market, a rich opportunity set of assets to roll-up, a successful acquisition and margin expansion blueprint, and powerful secular tailwinds,” Stifel analyst Steven Wieczynski said. BOWL YTD mountain Stifel begins coverage of Bowlero with a buy rating coupled with a $26 per share price target. Stifel highlighted the management structure at Bowelro, one of the underlying factors why investors should own the stock. Wieczynski added that the company lacks competition in the space, given their footprint. Bowlero’s pure bowling segment accounts for 49.6% of total revenue, while food and beverages make up 35.3% according to data from FactSet. “Putting that all together, it’s been a long time since we have come across a story within our universe with such strong growth characteristics,” Wieczynski added. “We believe the management team, which is founder-led, has a proven track record of executing BOWL’s growth strategy and possesses unparalleled industry knowledge and expertise in a niche space.” Bowlero shares have popped more than 18% year to date. That’s on top of a 49.5% rally in 2022, while the S & P 500 tumbled 19%. — CNBC’s Michael Bloom contributed to this report.
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