Stifel raises OneSpaWorld stock price target to $23

On Friday, Stifel analysts increased the price target for OneSpaWorld Holdings Ltd. (NASDAQ: NASDAQ:OSW) shares to $23.00, up from the previous target of $21.00, while maintaining a Buy rating on the stock. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $19 to $24, suggesting potential upside. The adjustment followed a series of investor meetings with the CEO and President/CFO/COO of OneSpaWorld, which left analysts with positive impressions regarding the company’s current demand trends and future financial prospects.

The analysts noted that demand trends for OneSpaWorld remain strong and consistent, leading them to believe that the company’s revenue and EBITDA guidance for 2025 could be seen as conservative. InvestingPro analysis shows the company’s strong financial health with an overall score of 3.32/5, labeled as "GREAT." With current EBITDA of $105.3 million and revenue growth of 9.8% in the last twelve months, this outlook assumes the economic environment will not change significantly through the end of the year. The company’s guidance for 2025 does not factor in any price increases, but Stifel suggests that the current demand levels could support modest price increases if they continue.

OneSpaWorld’s visibility into customer behavior is limited, and customer behaviors are subject to rapid changes. Despite this, Stifel feels confident enough in the company’s performance to raise their EBITDA estimate for 2025. Furthermore, they have increased their EBITDA estimates for 2026 and 2027 by approximately 4% per year. These revised estimates are still below the consensus, as they include the assumption of a moderate recession in the coming years.

The company’s commentary on share repurchases was also highlighted as incrementally constructive. InvestingPro data confirms management has been aggressively buying back shares, while maintaining a moderate debt level with a debt-to-equity ratio of 0.21. Stifel expects that OneSpaWorld’s shares will be supported during periods of market dislocation, based on these share repurchase discussions. The analyst’s optimism about the company’s financial health and strategic plans has led to a higher price target, indicating a positive outlook for OneSpaWorld’s stock performance. For deeper insights into OSW’s valuation and growth prospects, including 6 additional ProTips and comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.

In other recent news, OneSpaWorld Holdings Ltd. has seen mixed analyst reactions regarding its stock price target. Stifel analysts recently raised their price target for OneSpaWorld to $23 from $21, maintaining a Buy rating. This increase reflects confidence in the company’s revenue and EBITDA guidance for 2025, despite factoring in potential economic challenges. Stifel has also adjusted its EBITDA estimates for 2026 and 2027 upward by 4% annually, although these estimates remain below the consensus due to potential recession concerns.

Conversely, Truist Securities reduced their price target for OneSpaWorld to $19 from $22, while still keeping a Buy rating. This adjustment comes in anticipation of potential challenges, such as decreased discretionary spending by cruise and destination resort visitors. Truist highlighted uncertainties related to demand for Medi-Spa services and the spending habits of the middle class. Meanwhile, Stifel had previously cut its price target to $21 from $25, citing a challenging consumer environment but still recommending the stock as a Buy. Despite these different perspectives, both firms acknowledge the resilience factors and underlying strengths that could influence OneSpaWorld’s earnings.

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