Canaccord Genuity cuts On The Beach forecasts after profit warning
By Benjamin Chiou
Date: Thursday 25 Sep 2025
(Sharecast News) - Canaccord Genuity has lowered its target price for On The Beach following a worse-than-expected end to its financial year, but has kept a 'buy' rating on the stock, citing improving growth momentum over the medium term.
The broker cut its target price for the shares from 313p to 293p, which - following a 20% slump in the stock on Wednesday - indicates 43% upside from the most recent closing price of 205p.
Updating on trading, the online package holiday specialist said despite a "record" year to 30 September, bookings for summer 2026 were faring less well, as consumers opted to book far nearer to departure.
As a result, full-year adjusted pre-tax profits - excluding the now-discontinued B2B operations - are now slated to come in between £34.5m and £35.5m, compared with the £38.4m consensus forecast.
Canaccord Genuity said it was lowering its profit estimates "to reflect the tougher trading and macro environment", but said: "Despite the profit warning, we believe OTB is well positioned to accelerate growth medium term and the stock trades on a FY26E PE of just 10x."
The broker said the group's expansion into the city breaks market and debut in Ireland "should deliver improved growth medium term".
The stock had rebounded nearly 7% to 219p by 1225 BST.
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