OneSpaWorld: "Even Orchids of Asia didn't generate this much FCF"

ONESPAWORLD HOLDINGS

27/03/2019 12:44

** Stifel and Nomura start coverage of OneSpaWorld Holdings
 OSW.O  with a 'buy' rating on expectations of strong free
cash-flow (FCF) generation
    ** OneSpaWorld, which runs spa services on cruise ships and
in resorts, listed after completing its merger with blank check
co Haymaker Acquisition Corp on March 19  urn:newsml:reuters.com:*:nGNX54xKWX
    ** Nomura and Stifel were OSW's capital markets advisors
    ** Stifel says OSW is the ultimate FCF growth story in the
cruise/travel segment and estimates FCF/share will grow on avg
at ~40 pct per year for next 3 years
    ** Stifel in note titled "Even Orchids of Asia Didn't
Generate This Much FCF!" says heightened cruise supply growth
will benefit OSW, and expects stock's valuation to remain
compelling relative to growth
    ** Nomura Instinet estimates OSW manages over 80 pct of the
cruise spa/wellness market and notes OSW's "genetic parent"
Steiner Leisure was taken private in 2015 because of strong FCF
    ** Says OSW has a high ROIC business model similar to Hilton
 HLT.N , Marriott  MAR.O  and Choice Hotels  CHH.N , but with
stronger growth and less cyclicality
    ** Stifel sets PT at $16 and Nomura Instinet $15.50; OSW
stock closed at $12.99 on Tues., a penny below record high

 (Reporting by Savio D'Souza)
 ((RM:savio.dsouza.thomsonreuters.com@reuters.net))