Lucky Strike Entertainment stock rating reiterated at Buy by Jefferies

Investing.com - Jefferies has reiterated its Buy rating on Lucky Strike Entertainment (NYSE:LUCK) with a price target of $18.00, following the company’s fourth-quarter results. Currently trading at $10.20, the stock shows potential upside according to InvestingPro data, despite being unprofitable over the last twelve months.

The entertainment company exceeded expectations on both revenue and EBITDA metrics, with Season Pass momentum and strategic acquisitions strengthening its growth platform, according to Jefferies. The company’s EBITDA stands at $292.55M, with revenue growth of 6.65% year-over-year.

Management continues to make progress on conversions and is expanding the premium Lucky Strike brand to reach 100 locations by year-end, the research firm noted.

Despite issuing softer margin guidance, the company’s trends are steadily improving, and Jefferies sees further upside potential from the current position.

Jefferies highlighted that with shares trading near lows and a robust merger and acquisition backdrop, the risk/reward profile for Lucky Strike Entertainment appears attractive.

In other recent news, Lucky Strike Entertainment reported its fourth-quarter 2025 earnings, revealing a slight miss in earnings per share (EPS) with an actual EPS of -$0.095, compared to the forecasted -$0.09. Despite this, the company exceeded revenue expectations, generating $301.2 million, surpassing the projected $292.61 million. This resulted in a 2.94% positive surprise in revenue figures. Additionally, Oppenheimer has reiterated its Outperform rating for Lucky Strike Entertainment, maintaining a price target of $15.00. The firm noted that while fourth-quarter same-store sales were weaker overall, there was sequential improvement each month, with positive trends continuing into July. These developments provide investors with a mixed yet optimistic outlook on the company’s performance.

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