LONDON (ShareCast) - (Sharecast News) - Analysts at Shore Capital took a fresh look at "exceptionally well-run" ten-pin bowling outfit Hollywood Bowl on Wednesday, reiterating their 'buy' recommendation for the shares following the company's post-close update.
In the wake of the group's 5.8% revenue growth throughout the year, despite the affects of both the strong winter and summer weather seen across the UK, the World Cup and the "general malaise on the high street", the broker applauded Hollywood Bowl for its robust business model and its management team's excellent execution, including its dynamic pricing model.

Looking ahead, Shore Capital saw Hollywood Bowl as being set to benefit from two new openings at Watford and Lakeside, along with softer comparatives, leading the broker to retain full-year pre-tax estimates of £24.8m, or 13p per share.

With net debt of roughly £5m, implying a free cash balance of around £17m, Shore Capital also expected Hollywood Bowl's total dividend for the year to come to approximately 9.7p - yielding a dividend payout somewhere in the ballpark of 5%.

Shore Capital's research analyst Greg Johnson, said: "We continue to view Hollywood Bowl as an exceptionally well-run business in an attractive sub-sector of the leisure market. Our cash flow based fair value remains at c240p/share although we see scope to raise this over the medium term. The recent weakness in the share price appears unwarranted."

The broker also reiterated its 200p target price on Hollywood Bowl.

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