OneSpaWorld Holdings, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Max Rakhlenko from TD Cowen maintained a Buy rating on the stock and has a $25.00 price target.
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Max Rakhlenko has given his Buy rating due to a combination of factors that highlight OneSpaWorld Holdings’ strong performance and future potential. The company has reported robust revenue growth, surpassing expectations despite macroeconomic concerns. This growth is supported by increased onboard spending and improved operational efficiency, as evidenced by higher average revenue per ship and staff. The introduction of new ships in the latter half of the year is expected to further bolster the company’s performance.
Additionally, OneSpaWorld’s strong free cash flow generation allows for shareholder returns through dividends and share repurchases, with expectations for these to increase in the coming quarters. The company’s strategic investments in AI are anticipated to enhance its competitive edge and market share, although the financial impact will likely be seen in the mid-2026 period. These factors, combined with a resilient business model and a raised price target, underpin Rakhlenko’s positive outlook on the stock.
Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Home Depot, Planet Fitness, and AutoZone. According to TipRanks, Rakhlenko has an average return of 10.8% and a 66.86% success rate on recommended stocks.