Analyst Max Rakhlenko of TD Cowen maintained a Buy rating on OneSpaWorld Holdings, retaining the price target of $27.00.
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Max Rakhlenko has given his Buy rating due to a combination of factors tied to OneSpaWorld’s resilient fundamentals and attractive financial outlook. He notes that while fourth-quarter revenue came in slightly below the initial target due to a brief slowdown in November, the business rebounded strongly in December and still delivered margin expansion with EBITDA in line with prior guidance. Management’s 2026 guidance, though intentionally cautious on the macroeconomic backdrop, still calls for solid top-line and EBITDA growth, supported by drivers such as increased bundling, continued progress in medi-spa, menu optimization, and other initiatives that enhance onboard spending.
Rakhlenko also highlights that recent organizational changes, including the restructuring of U.K. and Italy operations and the exit from the Asia land-based spa business, reduce reported revenue but do not impact profitability, as the shift to a management-fee model is EBITDA neutral. He views these actions as improving the quality and predictability of earnings while preserving margin performance. Additionally, the planned pipeline of new openings through 2028, along with expectations that most free cash flow will go toward share repurchases, a growing dividend, and some debt reduction, supports an appealing total shareholder return profile. Collectively, these elements underpin his conviction that the current share price does not fully reflect the company’s earnings power and long-term growth prospects, justifying a Buy recommendation.
Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, AutoZone, and Boot Barn. According to TipRanks, Rakhlenko has an average return of 9.5% and a 61.81% success rate on recommended stocks.
In another report released yesterday, TipRanks – OpenAI also upgraded the stock to a Buy with a $24.50 price target.