RBC Capital Markets starts On The Beach at 'outperform'
By Michele Maatouk
Date: Tuesday 24 Jun 2025
(Sharecast News) - RBC Capital Markets started coverage of On The Beach on Tuesday with an 'outperform' rating and 340p price target, sending shares in the online package holiday platform surging.
"Through its differentiated, tech-driven, package-holiday offering, OTB will continue to take share from the legacy tour operators in its established core beach markets, whilst leveraging the brand to grow its new, high margin, City break proposition," the bank said.
RBC said revenue growth will outstrip slower growth in overheads and marketing, driving around 540 basis points of EBITDA margin accretion, with an FY24-27 estimated EBITDA compound annual growth rate of circa 20%.
The bank said it values OTB on 8.0x FY26 estimated adjusted EBITDA - in line with selected platform peers - driving the price target and supporting an 'outperform' recommendation.
At 0930 BST, the shares were up 5.6% at 277.61p.
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