Hollywood Bowl (LON:BOWL) – after dusting down the lanes they are now ready to roll, new Target Price

23.04.2025

Just before Christmas last year I stated that the shares of the £451m-capitalised Hollywood Bowl, then 295p, could fall back further, before resting at the lower levels, ahead of a climb forward again. 

At the start of this month, they fell to as low as 235.44p.

Last night they closed at 267.50p, off 6.50p on the day.

This morning’s First Half Trading Update from the UK’s and Canada’s largest ten-pin bowling operator, covering the six months to end-March, reported record first half group revenue of £129.2m, up 8.4%.

Trading in the first half has been strong and included a record revenue month in both the UK and Canada in December last year.

There remains strong, continued demand for fun leisure activities across both geographies.

Families are actively seeking experiences that are affordable, safe, and convenient, and that cater to all ages, while the group is well-positioned to meet this demand given its inclusive, great value-for-money offer.

CEO Stephen Burns stated that:

"We are pleased with our half-year performance, with results in line with our expectations, reflecting the ongoing demand for fun leisure activities and the attraction of bowling as an affordable, inclusive experience that everyone can enjoy.

We have made excellent progress in executing our growth strategy, opening five new centres, and upgrading six centres across the UK and Canada.

Our teams work extremely hard to deliver high-quality experiences and we continue to invest in growing our estate and enhancing our industry-leading proposition, while carefully controlling costs and cash."

I would now reckon that the shares will start to improve again and accordingly I set a new Target Price of 335p.

(Profile 14.11.19 @ 240p set a Target Price of 300p*) 

(Profile 23.04.25 @ 267.50p set a Target Price of 335p)