GB : Ten Entertainment Group PLC - Bowling still bouncing, further upgrades

Ten Entertainment continues to benefit from a structural shift towards value family entertainment and competitive socialising with LFL sales growth of +41.7% vs 2019 in the first 12 weeks of FY22E. Although this may temper as we approach the summer, it is more than enough to outpace inflation leading us to upgrade our FY22E PBT forecasts by 36% to £19.6m and lift our TP to 370p (from 340p). Longer term growth is supported by an improved customer experience from investment in marketing, CRM, innovation, and refurbishments alongside four new openings pa. The shares look undervalued on 8.3x CY22E EV/EBITDA (5.8x on IAS17) and FCF yield of 11.6% (15.1% in CY23E).