OneSpaWorld stock rating reiterated as Buy by Truist Securities

Published 08/08/2025, 15:54
OneSpaWorld stock rating reiterated as Buy by Truist Securities

Investing.com - Truist Securities has reiterated its Buy rating and $24.00 price target on OneSpaWorld Holdings Ltd. (NASDAQ:OSW), citing multiple positive factors supporting the company’s outlook. The stock, currently trading at $21.63, has demonstrated impressive momentum with a 42.65% return over the past year and is currently trading near its 52-week high of $23.17.

The research firm highlighted OneSpaWorld’s solid demand, simple business model, and considerable competitive moat as key strengths that make it one of the most-favored names in Truist’s coverage universe. According to InvestingPro data, the company has maintained strong financial health with a current ratio of 1.88, indicating solid liquidity.

According to Truist Securities, investors have shown particular interest in the company’s capital allocation strategy, with share buybacks taking priority, as well as OneSpaWorld’s artificial intelligence implementation and opportunities in wellness longevity trends. InvestingPro analysis confirms management’s aggressive share buyback program, with 11 additional exclusive insights available to subscribers.

The firm also noted OneSpaWorld’s strong company culture, high employee retention, and robust free cash flow that provides "considerable capital allocation optionality" for the business.

Truist Securities maintained its existing price target and estimates for OneSpaWorld, while suggesting potential upside could be "much broader" from the opportunities identified during recent management meetings with investors.

In other recent news, OneSpaWorld Holdings Ltd. has seen a series of positive developments. The company reported strong quarterly earnings with revenues exceeding the high end of guidance and notable EBITDA margin performance, as highlighted by TD Cowen. Truist Securities also noted OneSpaWorld’s robust first-quarter earnings, leading to an upward revision of the 2025 Adjusted EBITDA forecast to $121.2 million and EPS projections to $0.97. Analyst firms have responded to these financial results with increased price targets. Truist Securities raised its target to $24, citing anticipated AI-driven efficiencies, while Stifel and TD Cowen both increased their targets to $25, pointing to margin improvements and strong revenue performance, respectively.

Additionally, Stifel analysts expressed optimism about the company’s demand trends and future financial outlook following discussions with OneSpaWorld’s leadership. They suggested that the company’s 2025 revenue and EBITDA guidance could be conservative if current demand levels persist. Overall, these recent developments reflect positive sentiment from multiple analyst firms regarding OneSpaWorld’s operational and financial trajectory.

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