William Blair analyst Sharon Zackfia has reiterated their bullish stance on OSW stock, giving a Buy rating on October 7.
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Sharon Zackfia’s rating is based on the anticipation that OneSpaWorld Holdings will report third-quarter revenue near the upper limit of its guidance, driven by strong demand in its maritime health and wellness centers. The company is expected to achieve a sequential revenue growth of 7%, supported by increased per-guest spending due to favorable pre-booking trends and a shift towards higher-priced services, such as medi-spa offerings.
Additionally, the company is benefiting from minimal discounting, which contributes to a projected 5.0% to 5.5% rise in adjusted EBITDA, reaching approximately $35 million. This projection aligns with consensus estimates and is at the high end of the company’s guidance, reinforcing the positive outlook and supporting the Buy rating.
Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Royal Caribbean, Birkenstock Holding plc, and Wingstop. According to TipRanks, Zackfia has an average return of 6.8% and a 45.59% success rate on recommended stocks.
In another report released on October 7, Northcoast Research also initiated coverage with a Buy rating on the stock with a $28.00 price target.