Bowlero could rally on ‘less bad than feared’ outlook, says B. Riley

B. Riley reiterates a Buy rating on Bowlero with a $17 price target ahead of the fiscal Q4 report on September 5. The firm is optimistic that the combination of a strong start to the quarter, record demand for the relaunched Summer Season Pass offering, and the relatively low cost of the activity helped to drive solid same-store sales during the quarter. Even “less bad than feared” fiscal 2025 guidance could help move Bowlero shares higher, the analyst tells investors in a research note. Riley expects improving cash flows in fiscal 2025 and 2026, which it says provides “attractive optionality” for the company around debt reduction, bowling center growth, and capital returns to shareholders.