LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg slightly raised their target price on bowling centres operator Hollywood Bowl from 420.0p to 440.0p on Tuesday following the group's "solid" FY24 earnings and "upbeat" FY25 guidance.
Berenberg said Hollywood Bowl remains a top pick in the leisure space after it reported a record full-year performance, with strong growth despite tough comparatives and cost headwinds.

The German bank increased its revenue and underlying earnings estimates but also hiked its below-the-line items due to higher capex investment driving higher depreciation. This left EBIT broadly unchanged.

"Hollywood Bowl remains positive about its prospects in FY25, with trading performance starting well in the year and the company on track to meet its target of 130 centres by 2035. We expect positive like-for-like growth in FY25 and the impact from National Insurance changes to be partly mitigated," added Berenberg.

Looking ahead, Berenberg remains confident in Hollywood Bowl's prospects given its "best-in-class management team, solid balance sheet and long runway for growth". The analysts also npoted that Hollywood Bowl now trades on a price-to-earnings ratio of 14.6x and 14.1x on FY25/FY26 estimates.













Reporting by Iain Gilbert at Sharecast.com

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