OneSpaWorld Holdings: Dominance in Maritime Spa Industry and Promising Growth Potential

William Blair analyst Sharon Zackfia has reiterated their bullish stance on OSW stock, giving a Buy rating on May 1.

Sharon Zackfia has given her Buy rating due to a combination of factors that highlight OneSpaWorld Holdings’ strong market position and growth potential. The company’s resilience is evident as consumer spending continues to rise without significant changes in discounting or frequency, demonstrating stable demand. Zackfia notes that OneSpaWorld’s dominance in the maritime spa industry is reinforced by substantial barriers to entry, including logistics and staffing capabilities, exclusive at-sea arrangements, and effective data analytics.
Furthermore, OneSpaWorld is poised for long-term revenue growth in the high-single-digit range, supported by increased passenger spending on high-ticket medispa services and enhanced prebooking strategies. The company’s ability to increase passenger spend, evidenced by a 20% rise since 2019, coupled with a strong market share of over 90% in the maritime health and wellness sector, positions it well against competition. These factors, along with stable economic arrangements with cruise line partners, underpin Zackfia’s positive outlook and Buy rating for OneSpaWorld Holdings.

In another report released on May 1, Stifel Nicolaus also maintained a Buy rating on the stock with a $21.00 price target.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OSW in relation to earlier this year.