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Bowlero Corp. (NYSE:BOWL) traded higher in morning trading on Tuesday after Oppenheimer started off coverage with an Outperform rating.

Analyst Ian Zaffino and team said that as the largest operator of bowling centers in North America, Bowlero represents an interesting investment opportunity the firm believes in.

“It is ~7x larger than the No. 2 player, and the remaining industry is highly fragmented. The company’s emphasis on bowling first, focus on a diverse and sophisticated customer, and proprietary operating system have generated industry-leading margins.”

Oppenheimer assigned a price target of $16 to BOWL. That PT reps a multiple of ~10.2X the FY2023E EBITDA estimate, which Oppenheimer believes can be achieved as BOWL’s unit economics become apparent.

BOWL moved up 1.82% on Tuesday to $12.89.

The Seeking Alpha Quant Rating on BOWL is flashing Strong Buy.

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