Caesars Entertainment misses Q2 earnings expectations, shares edge lower
On Monday, Truist Securities increased the price target for OneSpaWorld Holdings Ltd. (NASDAQ: NASDAQ:OSW) to $21 from the previous $19 while reaffirming a Buy rating on the company’s shares. Currently trading at $19.50, OSW maintains a Strong Buy consensus among analysts. The adjustment by Truist Securities follows OneSpaWorld’s strong first-quarter earnings, which stood out against less favorable trends observed in U.S. day spas.
Truist Securities analyst Gregory Miller highlighted the company’s financial performance, noting an increase in the 2025 Adjusted EBITDA forecast to $121.2 million, up from $114.6 million, with a rise in EPS projections to $0.97 from $0.90. The company’s current EBITDA stands at $105.33 million, with impressive revenue growth of 9.8%. According to InvestingPro, three analysts have recently revised their earnings estimates upward for the upcoming period. Looking further ahead, the 2026 Adjusted EBITDA estimate was revised upward to $136.9 million from $127.8 million, and EPS expectations were adjusted to $1.10 from $1.01.
The new price target is anchored in an 18.0x multiple of the firm’s 2026 EBITDA estimate, a revision from the previous multiple of 17.0x. This change reflects improved macroeconomic conditions and a more optimistic outlook for the latter half of 2025, as new ship supply is anticipated to boost earnings through the end of 2026. This development is seen as a key factor in maintaining the Buy rating for OneSpaWorld’s stock.
Miller also pointed out that while there are potential downside risks related to discretionary spending and 2026 cruise bookings, the current recovery in the stock market and the perceived reduction in tariff threats have provided Truist Securities with greater confidence to raise the target multiple and, to some degree, their financial estimates for OneSpaWorld. InvestingPro analysis suggests the stock is currently undervalued, with a "GREAT" overall financial health score of 3.43. Discover more insights and 6 additional ProTips for OSW, along with comprehensive Pro Research Reports covering 1,400+ top stocks, exclusively on InvestingPro.
In other recent news, OneSpaWorld Holdings Ltd. has seen varied assessments from financial analysts. Stifel analysts have increased their price target for OneSpaWorld to $23.00, up from $21.00, while maintaining a Buy rating. This adjustment follows investor meetings that left analysts optimistic about the company’s demand trends and future financial prospects. They noted that current demand could justify price increases and raised their EBITDA estimates for the coming years, though these remain below consensus due to potential recession concerns. In contrast, Truist Securities lowered their price target to $19.00 from $22.00, citing potential decreases in discretionary spending at OneSpaWorld facilities. Despite this, Truist maintained a Buy rating, highlighting resilience factors such as the growth in wellness services and the appeal of improved facilities. Earlier, Stifel had also reduced their price target to $21.00, emphasizing OneSpaWorld’s ability to withstand broader market downturns. They identified the company as one of the "best in class" to potentially outperform peers despite challenging economic conditions.
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