OneSpaWorld Holdings: Strong Growth Potential and Robust Performance Justify Buy Rating

William Blair analyst Sharon Zackfia has reiterated their bullish stance on OSW stock, giving a Buy rating on April 8.

Sharon Zackfia has given her Buy rating due to a combination of factors that highlight OneSpaWorld Holdings’ strong performance and growth potential. The company is expected to achieve results at the higher end of its guidance for the first quarter, driven by robust demand in its core maritime health and wellness centers. Despite challenges such as increased dry dock days and the absence of a leap day, OneSpaWorld is anticipated to see a 4% revenue growth, supported by higher per-guest spending and a favorable shift towards more expensive services.
Furthermore, the company is projected to end the quarter with wellness centers on 199 ships, marking a 3% increase, including the introduction of a new ship, the Norwegian Aqua. This expansion is expected to continue, with a forecasted 3.5% to 4.0% increase in average ships served by 2025, including the addition of nine new ships. These factors contribute to an expected 5% rise in adjusted EBITDA, reaching nearly $27 million, reinforcing the Buy rating due to the company’s promising growth trajectory and financial performance.

In another report released on April 8, 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.