Deutsche Bank has upped its target price for On the Beach Group (LSE:OTB) from 250p to 320p, keeping a 'buy' rating on the stock.
The upgrade reflects confidence in the company’s medium-term growth strategy, particularly its expansion into city breaks, which should expand its customer base while improving profitability.
This move has been made possible by its upgraded technology platform and a game-changing partnership with Ryanair (RYA).
Beyond city breaks, OTB is also growing through its new package holiday business in Ireland and double-digit growth in its core operations.
Deutsche Bank expects profit before tax (PBT) to grow at over 20% per year until 2029, with share buybacks potentially pushing that figure closer to 30%.
On Wednesday, the shares were up 1% at 254.5p.