Berenberg lifts Hollywood Bowl price target after 'impressive' results

Berenberg lifted its price target on Hollywood Bowl on Tuesday to 370p from 360p following an "impressive" set of interim results.

It noted that the company delivered like-for-like revenue growth of 3.5%, a record first-half revenue number of £110.2m and adjusted EBITDA pre-IFRS 16 of £35.1m, reflecting 13.2% growth year-over-year excluding the VAT benefit on bowling in the first half of 2022.

With respect to the outlook, Hollywood Bowl said it remains cognisant of macroeconomic factors but is pleased with current trading, which is in line with the board’s financial expectations.

"As a result of the strong set of results, we lift our estimates and increase our price target to 370p," Berenberg said.

"With its market-leading position in the UK and growth opportunities in Canada, the continued cash flow generation of the business, the success of its refurbishment and new centre opening strategy, our confidence in the company’s future prospects are further reaffirmed by this set of results."

Berenberg has a ‘buy’ rating on the shares.