Highlights

  • Berenberg lifts target price on On the Beach after FY25 results.
  • Broker cites improving summer 2026 booking trends across key segments.
  • Business performance highlighted across beach, city breaks and Ireland divisions.

Analysts at Berenberg have raised their target price on On the Beach Group Plc (LON:OTB) from 300p to 330p, announcing the revision after the company released its full-year 2025 results on 2 December. According to the brokerage, the results helped stabilise sentiment around the company’s near-term outlook, particularly as early indicators for summer 2026 bookings continue to build momentum.

Berenberg stated that the company’s latest performance has helped reassure the market regarding demand trends and operational execution heading into the next financial cycle. The broker maintained its buy rating, emphasising that the outlook aligns with its expectations based on current booking patterns and segment activity.

Performance Across Key Divisions Noted in Analysis

The brokerage commented that On the Beach is progressing across several operational areas. Its core beach business and city-break segment were both cited as contributing positively to recent performance. Additionally, activities in the Republic of Ireland continue to expand, supported by competitive positioning and customer acquisition trends.

Although Berenberg noted that the company still has work ahead to meet its medium-term ambitions, it acknowledged that the latest full-year numbers reflect constructive progress. The firm added that the group continues to outpace overall market growth and maintains an operating framework that supports stable delivery across its divisions.

Valuation Context and Market Metrics

Alongside the target price revision, Berenberg highlighted valuation metrics for On the Beach. Based on its estimates, the stock trades at 10.1x FY26 earnings and 8.1x FY27 earnings, a level the broker described as aligned with sector expectations. The firm reiterated that these metrics form part of its ongoing assessment of the group’s strategic and financial outlook.

On the Beach operates as an online travel retailer, offering package holidays, short breaks and related services across the UK and Ireland. Its platform model continues to support a diversified customer mix across beach and city travel categories.

Shares of OTB last traded at GBX 223.50 on 08 December 2025.