Truist has increased its price target for OneSpaWorld (OSW, Financial) to $21, up from a previous target of $19, while maintaining a Buy rating on the stock. According to insights from the firm's private cruise travel agent contacts, there have been no significant challenges with onboard spending, particularly within wellness facilities, as observed a few weeks ago. The firm notes that due to the broader stock market recovery and diminished tariff concerns, it feels more comfortable with elevating its target multiple for OneSpaWorld at this time.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for OneSpaWorld Holdings Ltd (OSW, Financial) is $22.00 with a high estimate of $24.00 and a low estimate of $19.00. The average target implies an upside of 12.19% from the current price of $19.61. More detailed estimate data can be found on the OneSpaWorld Holdings Ltd (OSW) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, OneSpaWorld Holdings Ltd's (OSW, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for OneSpaWorld Holdings Ltd (OSW, Financial) in one year is $18.83, suggesting a downside of 3.98% from the current price of $19.61. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the OneSpaWorld Holdings Ltd (OSW) Summary page.
OSW Key Business Developments
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OneSpaWorld Holdings Ltd (OSW, Financial) reported a 4% increase in total revenues to $219.6 million compared to the first quarter of 2024.
- The company experienced a 5% increase in adjusted EBITDA to $26.6 million, despite non-recurring severance expenses.
- OSW expanded its operations by adding new ships and agreements with long-standing partners, including a new health and wellness center on Norwegian Cruise Line's first Prima Plus class ship.
- The company continues to innovate with high-value services such as Medi-spa, IV therapy, and acupuncture, contributing to a 20% growth in these treatments.
- OSW's board approved a new $75 million share repurchase program, demonstrating a commitment to enhancing shareholder value.
Negative Points
- Income from operations slightly decreased to $16.8 million, impacted by $2.5 million in non-recurring severance expenses.
- Net income decreased to $15.3 million from $21.2 million in the first quarter of 2024, primarily due to changes in the fair value of warrant liabilities.
- The company experienced a $1.5 million decrease in its land-based spa business, partly due to hotel closures.
- Salary, benefits, and payroll taxes increased to $11 million from $8.5 million, driven by severance expenses and stock unit vesting.
- Despite strong performance, the company remains cautious about potential economic downturns affecting consumer spending and cruise activity.
