Oppenheimer maintains Lucky Strike stock with $15 target

Published 05/02/2025, 20:02
Oppenheimer maintains Lucky Strike stock with $15 target

The analyst noted that corporate event activity continued to be weak in January, with retail sales being flat to down. Food performance remained consistent, but there was a noted weakness in premium alcohol and beverage sales. Despite these challenges, Lucky Strike is focusing on optimizing labor to improve operating leverage. Management has maintained its fiscal year 2025 guidance, expecting revenues between $1.23 billion and $1.28 billion, and EBITDA ranging from $390 million to $430 million.In light of the recent performance and lower SSS assumptions, Oppenheimer has adjusted its fiscal year 2025 EBITDA estimate for Lucky Strike to $397 million, a decrease from the previously estimated $408 million. InvestingPro analysis indicates that while the company isn’t currently profitable, analysts expect positive earnings this year with an EPS forecast of $0.46. Despite this adjustment, the firm has chosen to maintain its Outperform rating on the stock. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels.

The analyst noted that corporate event activity continued to be weak in January, with retail sales being flat to down. Food performance remained consistent, but there was a noted weakness in premium alcohol and beverage sales. Despite these challenges, Lucky Strike is focusing on optimizing labor to improve operating leverage. Management has maintained its fiscal year 2025 guidance, expecting revenues between $1.23 billion and $1.28 billion, and EBITDA ranging from $390 million to $430 million.In light of the recent performance and lower SSS assumptions, Oppenheimer has adjusted its fiscal year 2025 EBITDA estimate for Lucky Strike to $397 million, a decrease from the previously estimated $408 million. InvestingPro analysis indicates that while the company isn’t currently profitable, analysts expect positive earnings this year with an EPS forecast of $0.46. Despite this adjustment, the firm has chosen to maintain its Outperform rating on the stock. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels.

The analyst noted that corporate event activity continued to be weak in January, with retail sales being flat to down. Food performance remained consistent, but there was a noted weakness in premium alcohol and beverage sales. Despite these challenges, Lucky Strike is focusing on optimizing labor to improve operating leverage. Management has maintained its fiscal year 2025 guidance, expecting revenues between $1.23 billion and $1.28 billion, and EBITDA ranging from $390 million to $430 million.

In light of the recent performance and lower SSS assumptions, Oppenheimer has adjusted its fiscal year 2025 EBITDA estimate for Lucky Strike to $397 million, a decrease from the previously estimated $408 million. Despite this adjustment, the firm has chosen to maintain its Outperform rating on the stock.

In other recent news, Lucky Strike Entertainment has been experiencing significant developments. JPMorgan recently downgraded the company’s stock rating from Overweight to Neutral and reduced the price target from $15.00 to $12.00, citing concerns over a challenging pricing environment within the bowling industry. On the other hand, the company secured $150 million in incremental term loans, amending its existing credit agreement with JPMorgan Chase (NYSE:JPM) Bank and other lenders.

Oppenheimer maintained its Outperform rating on Lucky Strike, with a steady price target of $15.00, following a visit to a new location in Miami and discussions with the company’s management. The company also announced the election results for its Board of Directors, with all director nominees securing their positions for the next term.

These are recent developments that have occurred following the company’s rebranding from Bowlero Corporation to Lucky Strike Entertainment. The rebranding initiative includes the conversion of over 75 Bowlero centers to Lucky Strike venues within the next two years, and the company’s expansion into water parks and family entertainment centers.

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