Berenberg nudges up target price on Ten Entertainment

Analysts at Berenberg raised their target price on ten-pin bowling centres operator Ten Entertainment from 350.0p to 380.0p on Wednesday, stating the group was "rolling along nicely".

Berenberg said Ten Entertainment had delivered a "strong set of FY22 results" on 22 March, in line with its January trading update, as it continued to capitalise on the trend towards "experiential leisure".

Like-for-like sales were easily ahead of strong prior year numbers, while costs also appeared to be "well managed".

"As we look into FY23, we believe that Ten Entertainment's sales growth, pipeline, and balance sheet are in a good position to take advantage of the opportunities available in the UK bowling market," said Berenberg.

However, the German bank stated its preference in the sector remains with Hollywood Bowl, it maintained its 'buy' rating on Ten Entertainment as it updated its numbers on the stock

"We adjust our numbers to reflect the reported FY22 estimates. As a result, our sales estimates increase by 7%/10%, EBIT estimates by 15%/13% and EPS estimates by 15%/12% for FY23/FY24, respectively," concluded Berenberg.

Reporting by Iain Gilbert at Sharecast.com