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Jefferies reiterated a Buy rating on Bowlero Corp. (NYSE:BOWL) ahead of the bowling center operator's FQ3 earnings report.
Analyst Randal Konik pointed to a positive trajectory for foot traffic despite weather challenges in January.
"BOWL experienced a healthy upswing in February and March, aligning with expectations and positioning the 3Q comp guide of low single-digit to flat growth within reach. March experienced a 3.8% YoY decline in visits over the 3-month rolling period, a marked improvement compared to the declines of 6.7% and 8.2% in February and January, respectively. Further, on a 2-Yr stack, March witnessed an increase of 15.2%, compared to an increase of 17.7% and 14.6% in February and January, respectively."
Konik said the firm is incrementally more positive on Bowlero's (BOWL) earnings report and expects the company to meet its comparable sales guidance. Jefferies has a price target of $30 on BOWL based on a 15X multiple of the 2024 EV/EBITDA estimate.
Bowlero (BOWL) is scheduled to report FQ3 earnings on May 6. Analysts expect revenue of $342.3M and EPS of $0.25 to be disclosed.
Shares of Bowlero (BOWL) are down 15.5% on a year-to-date basis.