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Investing.com - Stifel raised its price target on OneSpaWorld Holdings Ltd. (NASDAQ:OSW) to $25.00 from $23.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently trading at $22.20 and near its 52-week high of $23.01, has demonstrated strong momentum with a 30.8% return over the past year.
The firm cited an emerging margin enhancement opportunity that is "quickly becoming a reality" for the spa services provider, which primarily operates through revenue share agreements with cruise line partners. According to InvestingPro analysis, OneSpaWorld maintains a "GREAT" financial health score of 3.41, with 12 additional exclusive insights available to subscribers.
Stifel noted that demand trends for OneSpaWorld’s services remain "consistent/strong in real time" and suggested that the company’s 2025 revenue and EBITDA guidance appears "somewhat conservative" assuming current economic conditions persist.
The research firm pointed out that OneSpaWorld has not embedded any price increases into its 2025 guidance, and current demand levels could potentially support modest price action.
With leverage below 1.0x, liquidity exceeding $85 million, and substantial cash reserves available for share repurchases, Stifel believes the long-term capital return potential gives OneSpaWorld "an advantage over other consumer facing companies."
In other recent news, OneSpaWorld Holdings Ltd. has seen a series of analyst upgrades following strong financial performance. TD Cowen raised its price target for the company from $22 to $25, citing revenues that exceeded the high end of guidance and strong EBITDA margin performance. Similarly, Truist Securities increased its price target from $19 to $21, highlighting the company’s strong first-quarter earnings and adjusting future financial forecasts upwards, including a revised 2025 Adjusted EBITDA forecast of $121.2 million. Stifel also raised its price target for OneSpaWorld to $23 from $21 after investor meetings with the company’s executives, maintaining a positive outlook on current demand trends and future financial prospects. Analysts from Stifel suggested that the company’s revenue and EBITDA guidance for 2025 might be conservative, assuming stable economic conditions. They noted that while the company’s guidance does not include potential price increases, current demand levels could support such changes. These developments reflect a generally optimistic view among analysts regarding OneSpaWorld’s financial trajectory and market position.
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