On Wednesday, Stifel analysts increased their price target on OneSpaWorld Holdings Ltd. (NASDAQ:OSW) shares to $25 from the previous $24, while reiterating a Buy rating on the stock. Currently trading at $19.13 and with a market capitalization of $1.99 billion, OSW is trading near its 52-week high of $20.57.
The firm's analysts were encouraged by the company's strong key performance indicators (KPIs) and the ability to generate earnings before interest, taxes, depreciation, and amortization (EBITDA) and free cash flow (FCF) that could surpass their 2025 guidance. According to InvestingPro data, the company's current valuation appears to be fairly priced relative to its Fair Value.
In a recent series of investor meetings with OneSpaWorld's CEO, COO, and CFO, Stifel analysts observed that the company's onboard KPIs, including guest spend, pre-booked sales, and passenger penetration rates, continue to significantly exceed historical levels without showing signs of deceleration.
These positive trends have bolstered the analysts' confidence in OneSpaWorld's financial outlook. InvestingPro analysis reveals strong financial health with a "GREAT" overall score of 3.46, supported by impressive revenue growth of 13.6% and healthy liquidity with a current ratio of 1.84.
Stifel's analysts have acknowledged the conservative nature of OneSpaWorld's 2025 guidance but do not anticipate the company to outperform its initial guidance to the same extent as it did in 2024. They noted that the preannounced fourth-quarter 2024 EBITDA of $26.5 million was consistent with their estimates. However, they believe that without certain negative headwinds from land-based assets, the company's performance could have surpassed expectations.
As a result of these insights, Stifel has adjusted their out-year EBITDA estimates upward by approximately 2% per year. The analysts underscored their Buy rating, citing OneSpaWorld as an attractive investment opportunity within the cruise industry, offering comparatively lower risk. The revised price target of $25 reflects their positive outlook on the company's financial performance and market position.
This aligns with the broader analyst consensus, which shows a Strong Buy rating. Discover more detailed insights and 7 additional key ProTips for OSW with a subscription to InvestingPro, including comprehensive financial analysis and expert research reports.
In other recent news, OneSpaWorld Holdings Ltd. reported robust financial performance in the third quarter of 2024, with total revenues increasing by 12% to reach $241.7 million. The company's income from operations and adjusted EBITDA also saw significant growth, with increases of 48% and 33% respectively. Following these results, OneSpaWorld raised its fiscal year 2024 revenue and adjusted EBITDA guidance for the third time.
Meanwhile, TD Cowen analyst recently upgraded the price target for OneSpaWorld shares to $22, maintaining a buy rating. The analyst praised the company's strong performance and anticipated new ship introductions to bolster an even more robust 2026. The company's fourth-quarter pre-announcement showed revenues and EBITDA slightly exceeding the prior guidance, signaling solid execution.
In other developments, Haymaker Acquisition Corp. 4 reported significant leadership changes with Andrew R. Heyer stepping down from his roles as director, Chief Executive Officer, and chairman. The board appointed Christopher Bradley as the new director, Chief Executive Officer, and chairman.
Bradley, who already serves as the Chief Financial Officer and secretary of Haymaker, will hold his new roles until the company's third annual general meeting or until his successor is elected and qualified.
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