William Blair analyst Sharon Zackfia has reiterated their bullish stance on OSW stock, giving a Buy rating on December 3.
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Sharon Zackfia has given her Buy rating due to a combination of factors that highlight the resilience and strategic positioning of OneSpaWorld Holdings. The company’s strong operational execution and focus on technological and strategic innovation are pivotal in driving future growth. OneSpaWorld’s dominance in the maritime spa sector is reinforced by significant barriers to entry, such as logistics, staffing, data analytics, and exclusive at-sea arrangements, which provide a clear path to long-term revenue growth and robust free cash flow generation.
Moreover, the company benefits from a healthy base of cruise passengers, requiring only a modest penetration rate to achieve its targets. The shift towards shorter Caribbean cruises, which attract high-spending North American passengers, is seen as advantageous. Additionally, the trend of cruise lines developing their own destinations is viewed as an opportunity for OneSpaWorld to capture additional revenue streams both onboard and potentially onshore. These factors, combined with the potential for increased passenger spending on high-ticket medi-spa services and prebooking momentum, support the positive outlook and Buy rating.
According to TipRanks, Zackfia is a 4-star analyst with an average return of 6.0% and a 46.92% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Carnival, and Royal Caribbean.
In another report released on December 3, TR | OpenAI – 4o also upgraded the stock to a Buy with a $22.00 price target.