Analyst Max Rakhlenko of TD Cowen maintained a Buy rating on OneSpaWorld Holdings (OSW – Research Report), retaining the price target of $24.00.
Max Rakhlenko has given his Buy rating due to a combination of factors that highlight the resilience and growth potential of OneSpaWorld Holdings. The company’s ability to maintain strong demand, even amidst concerns of a broader economic slowdown, is a key factor. The cruise industry, which OSW is a part of, has shown historical passenger growth even during economic downturns, providing a stable environment for OSW’s operations.
Additionally, OSW’s revenue growth is expected to be driven by the introduction of new ships and internal initiatives, with a forecasted increase of high single digits to 10%. Despite concerns about tax rates, OSW is anticipated to maintain a low tax structure. Furthermore, the company’s focus on capital returns, particularly through share repurchases, is expected to enhance shareholder value. These elements collectively contribute to the positive outlook and justify the Buy rating.
In another report released on February 25, Truist Financial also maintained a Buy rating on the stock with a $22.00 price target.