By IPO Edge Editorial Staff
Shares of Bowlero Corp. (NYSE: BOWL) surged 3% on Wednesday after Jefferies initiated coverage of with a buy rating.
Jefferies analyst Randal Konik initiated coverage of Bowlero with a $23 price target.
Bowlero’s “strong brand, large and growing center footprint, and leading entertainment experience” are likely to further bolster its competitive positioning in the “large and highly fragmented” bowling industry, driving margin expansion and substantial free cash flow generation over time, Konik wrote in a research note to investors.
With short interest at 10% of the float and Bowlero trading below its historical valuation, there is potential for “meaningful stock price appreciation,” the analyst wrote.
There is also significant opportunity for expansion both in the US and internationally, Konik wrote.
Contact:
IPO-Edge.com
Editor@IPO-Edge.com
Instagram: @ipoedge
Twitter: @ipoedge
