Caesars Entertainment misses Q2 earnings expectations, shares edge lower
On Friday, Stifel analysts increased their price target on OneSpaWorld Holdings Ltd. (NASDAQ: NASDAQ:OSW) shares to $23.00, up from the previous target of $21.00, while reiterating a Buy rating on the stock. The adjustment followed a series of investor meetings hosted by Stifel, which included OneSpaWorld’s CEO and the President/CFO/COO. The company appears attractively valued, with InvestingPro data showing a low P/E ratio relative to near-term earnings growth, strong profitability over the last twelve months, and liquid assets exceeding short-term obligations.
Stifel’s analysts reported that the demand trends for OneSpaWorld remain consistent and strong. They also expressed confidence in the company’s revenue and EBITDA guidance for 2025, suggesting it may be conservative if the economic conditions remain stable through the end of the year. The analysts noted that OneSpaWorld’s guidance does not factor in any potential price increases, yet they believe that the current demand levels could justify modest price increases if they continue. Discover more insights about OSW’s financial outlook with InvestingPro, which reveals 6 additional key factors affecting the company’s growth potential.
The firm has also increased its EBITDA estimates for OneSpaWorld for the years 2026 and 2027 by approximately 4% per year. Despite this increase, Stifel’s projections still remain below the consensus, as they are factoring in the possibility of a moderate recession in the coming years.
Stifel found OneSpaWorld’s comments on share repurchases to be incrementally constructive and anticipates that the stock will be supported during market dislocations. According to InvestingPro data, management has been aggressively buying back shares, while operating with a moderate level of debt. The new price target represents Stifel’s confidence in OneSpaWorld’s performance and market strategy, reflecting a positive outlook on the company’s future financial health, further supported by three analysts recently revising their earnings estimates upward for the upcoming period.
In other recent news, OneSpaWorld Holdings Ltd. has seen adjustments to its stock price targets from two major firms. Truist Securities has lowered its target to $19 from $22 while maintaining a Buy rating, citing potential challenges in discretionary spending among cruise and resort visitors. Despite these concerns, Truist remains optimistic about the company’s resilience due to ongoing growth in wellness and improved facilities. Meanwhile, Stifel has also reduced its price target for OneSpaWorld to $21 from $25, yet continues to recommend the stock as a Buy. Stifel analysts highlight the company’s ability to withstand broader market downturns, considering it among the "best in class" to outperform peers amid economic uncertainties. Both firms acknowledge the challenging consumer environment but express confidence in OneSpaWorld’s underlying strengths. Investors are paying close attention to these developments as they await the company’s upcoming earnings report. The adjustments reflect a cautious optimism, with both firms identifying potential upsides despite the current economic backdrop.
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