OSW Stock Forecast & Price Target

OneSpaWorld Holdings Ltd has demonstrated a significant increase in pre-booking penetration, rising by 700 basis points to approximately 23% of service revenues since the pandemic, highlighting a successful focus on collaboration with cruise line partners. The company anticipates further top-line growth driven by an expansion of Medispa offerings and improved utilization of spa services on port days, indicating robust demand potential. Additionally, pre-booked customers tend to spend around 30% more than traditional walk-in guests, presenting a meaningful opportunity for organic revenue growth.

OneSpaWorld Holdings Ltd exhibits signs of consumer weakness as evidenced by consistent customer spending on material goods in the spa, which has remained at approximately 20% of total revenues. The company's decision to maintain its financial guidance, rather than raise it, highlights concerns surrounding elevated drydock activity across its fleet during the first quarter of 2025, limiting potential for outperformance. Additionally, the increased macroeconomic uncertainty following Liberation Day further compounds the challenges facing the company, presenting a negative outlook for its financial performance.