OneStream's Stock Soars as Analysts Raise Price Targets Following Strong Q2 Results

OneStream shares target raised on strong 2Q results By Investing.com

On Wednesday, Needham raised the price target on OneStream (NASDAQ:OS) to $35 from $33 while maintaining a Buy rating on the shares. The adjustment follows OneStream's reported second-quarter results, which met the high end of the company's expected range. OneStream, which has recently gone public, showcased a robust start, aligning with analyst expectations. OneStream's fiscal year 2024 revenue guidance encompassed analyst estimates, with third-quarter subscription revenue growth forecasted at 35%, surpassing the anticipated 30%. This increase indicates potential sales momentum or higher deal volumes at the start of the quarter. The company's current Remaining Performance Obligations (RPO) saw a year-over-year increase of 41%, reinforcing the perspective of strong market demand. The management team at OneStream provided positive insights on the demand for the company's core solutions. Additionally, they emphasized the growing influence of artificial intelligence (AI) in their offerings. This focus on AI is expected to provide a subtle yet significant boost to the company's revenue growth into fiscal year 2025. OneStream's trajectory towards profitability by the end of fiscal year 2024 is anticipated to further support the stock's performance. The company's positive financial results and strategic focus on AI as a growth driver are key factors underpinning the reiterated Buy rating. In other recent news, OneStream Inc. has been the recipient of positive analyst attention following robust Q2 results that exceeded expectations. BofA Securities increased its share price target to $36, maintaining a Buy rating, due to the company's strong performance in total revenues, non-GAAP operating income, and free cash flow. The firm also noted OneStream's potential to capture a significant portion of the $44 billion total addressable market. Similarly, Truist Securities reiterated a Buy rating and a $35.00 price target, emphasizing OneStream's alignment with previous estimates and the importance of the company's upcoming third-quarter and full-year forecasts. Other financial firms, including Scotiabank, Needham, and TD Cowen, also initiated coverage with Buy ratings, recognizing OneStream's potential for sustained high revenue growth rates, integration of machine learning and artificial intelligence technologies, and significant free cash flow margin expansion. These recent developments highlight a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position. It's important for investors to note that these are recent developments and should be considered when making investment decisions. In light of OneStream Inc.'s positive second-quarter results and the subsequent price target raise by Needham, InvestingPro data provides additional context for investors considering the stock. OneStream's market capitalization stands at $7.1 billion, reflecting a significant size in the market. Despite not being profitable over the last twelve months, as indicated by a negative P/E ratio, the company's revenue growth is noteworthy, with a substantial quarterly increase of nearly 40%. This aligns with the strong sales momentum hinted at by OneStream's guidance and RPO growth. The robust gross profit margin of approximately 70% underscores the company's ability to retain a majority of its revenue after accounting for the costs of goods sold, which can be an indicator of pricing power and operational efficiency. However, it's important to note that OneStream is trading at a high revenue valuation multiple and is near its 52-week high, suggesting that the stock's current price already reflects a degree of optimism about its growth prospects. For investors seeking further analysis, there are additional InvestingPro Tips available, which highlight that OneStream operates with a moderate level of debt and does not pay a dividend, potentially affecting the investment strategies of income-focused investors. For those interested in a deeper dive into OneStream's financials and potential investment strategies, more InvestingPro Tips can be found at Investing.com/pro/OS.

Needham raises OneStream shares target raised on strong 2Q results By Investing.com

Needham has raised the price target on OneStream Inc. (NASDAQ: OS) to $35 from $33 while maintaining a Buy rating on the shares. The adjustment follows OneStream's reported second-quarter results, which met the high end of the company's expected range. OneStream, which has recently gone public, showcased a robust start, aligning with analyst expectations. OneStream's fiscal year 2024 revenue guidance encompassed analyst estimates, with third-quarter subscription revenue growth forecasted at 35%, surpassing the anticipated 30%. The increase indicates potential sales momentum or higher deal volumes at the start of the quarter. The company's current Remaining Performance Obligations (RPO) saw a year-over-year increase of 41%, reinforcing the perspective of strong market demand. The management team at OneStream provided positive insights into the demand for the company's core solutions. Additionally, they emphasized the growing influence of artificial intelligence (AI) in their offerings. This focus on AI is expected to provide a subtle yet significant boost to the company's revenue growth into fiscal year 2025. OneStream's trajectory towards profitability by the end of fiscal year 2024 is anticipated to further support the stock's performance. In other recent news, BofA Securities increased its share price target to $36, maintaining a Buy rating, due to the company's strong performance in total revenues, non-GAAP operating income, and free cash flow. The firm also noted OneStream's potential to capture a significant portion of the $44 billion total addressable market. Similarly, Truist Securities reiterated a Buy rating and a $35.00 price target, emphasizing OneStream's alignment with previous estimates and the importance of the company's upcoming third-quarter and full-year forecasts. Other financial firms, including Scotiabank, Needham, and TD Cowen, also initiated coverage with Buy ratings, recognizing OneStream's potential for sustained high revenue growth rates, integration of machine learning and artificial intelligence technologies, and significant free cash flow margin expansion. In light of OneStream Inc.'s positive second-quarter results and the subsequent price target raise by Needham, InvestingPro data provides additional context for investors considering the stock. OneStream's market capitalization stands at $7.1 billion, reflecting a significant size in the market. Despite not being profitable over the last twelve months, as indicated by a negative P/E ratio, the company's revenue growth is noteworthy, with a substantial quarterly increase of nearly 40%. This aligns with the strong sales momentum hinted at by OneStream's guidance and RPO growth. The robust gross profit margin of approximately 70% underscores the company's ability to retain a majority of its revenue after accounting for the costs of goods sold, which can be an indicator of pricing power and operational efficiency. However, it's important to note that OneStream is trading at a high revenue valuation multiple and is near its 52-week high, suggesting that the stock's current price already reflects a degree of optimism about its growth prospects. For investors seeking further analysis, there are additional InvestingPro Tips available, which highlight that OneStream operates with a moderate level of debt and does not pay a dividend, potentially affecting the investment strategies of income-focused investors. For those interested in a deeper dive into OneStream's financials and potential investment strategies, more InvestingPro Tips can be found at Investing.com/pro/OS.

Baird raises OneStream shares target on strong Q2 growth By Investing.com

Baird has shown confidence in OneStream Inc. (NASDAQ: OS) by raising its price target to $35 from the previous $32 while keeping an Outperform rating on the stock. OneStream, a provider of software for the Office of the CFO, has recently gone public and reported a robust second quarter for the fiscal year 2024. The company's revenue saw a year-over-year increase of 36%, while subscription growth was even more impressive at 44%. The company's initial public offering took place in late July at a price of $20 per share and since then, OneStream has demonstrated considerable momentum, especially in the international market, which has been identified as a crucial area for growth. Additionally, the company's artificial intelligence offering, Sensible ML, is garnering notable demand among new customers. OneStream's total addressable market (TAM) within its "legacy" installed base is estimated at $10 billion. The company's strong platform and experienced management team contribute to Baird's optimistic outlook. In other recent news, OneStream has been receiving positive attention from several financial firms following its strong second-quarter performance. Guggenheim maintained its Buy rating on OneStream, lifting the price target to $35, following the company's robust 36% revenue growth and a 31% growth in Annual Recurring Revenue (ARR). The firm also noted OneStream's success in the current IT spending environment, attributing it to early adjustments and skilled operations. Similarly, Needham and BofA Securities raised their price targets to $35 and $36 respectively, maintaining their Buy ratings. This came after OneStream's Q2 results met the high end of expected range, with a forecasted third-quarter subscription revenue growth of 35%, surpassing the anticipated 30%. Truist Securities maintained a Buy rating and a $35.00 price target, emphasizing OneStream's alignment with previous estimates and the importance of the company's upcoming third-quarter and full-year forecasts. Likewise, Scotiabank initiated coverage with a Sector Outperform rating and a $34 price target, highlighting OneStream's transformative role in unifying enterprise systems. OneStream's management team provided positive insights on the demand for the company's core solutions, with an emphasis on the growing influence of artificial intelligence in their offerings. InvestingPro Insights Recent data from InvestingPro offers additional context to Baird's bullish stance on OneStream Inc. (NASDAQ: OS). As of the latest metrics, OneStream boasts a market capitalization of $7.1 billion, underscoring its substantial presence in the market since its recent IPO. Despite the company not being profitable in the last twelve months, with a negative P/E ratio of -212.64, investors are showing confidence, as reflected in the stock trading near its 52-week high, with the price at 96.43% of this peak. The company's revenue growth remains impressive, with a 39.93% quarterly increase as of Q1 2024, and a gross profit margin of 69.79%. This demonstrates OneStream's ability to generate revenue efficiently, a key factor that may be contributing to the positive sentiment from analysts and investors alike. It's important to note that OneStream is operating with a moderate level of debt, which can be a sign of prudent financial management, especially for a company in its growth phase. For readers interested in a deeper dive, there are additional InvestingPro Tips available, providing a comprehensive analysis of OneStream's financial health and market position. To explore these further, visit InvestingPro's dedicated section for OneStream at https://www.investing.com/pro/OS.

Guggenheim boosts OneStream stock outlook amid positive FCF and revenue growth By Investing.com

On Wednesday, Guggenheim maintained its Buy rating on OneStream Inc. (NASDAQ:OS) stock and increased the price target to $35 from $34. This adjustment follows OneStream's strong performance in the second quarter of 2024, which marked the company's first quarter as a publicly traded entity. OneStream showcased a robust 36% revenue growth and a 31% growth in Annual Recurring Revenue (ARR), alongside its third consecutive quarter of positive Free Cash Flow (FCF). The company's second-quarter results, which were at the high end of preliminary numbers filed on July 24, demonstrated OneStream's potential in the market. The firm recognized OneStream's ability to navigate the current IT spending environment effectively, attributing their success to early adjustments and skilled operations within this 'new normal'. The Guggenheim analyst highlighted OneStream's multiple streams of opportunity that are expected to coalesce into a comprehensive offering. The analyst further noted that OneStream is not just a temporary beneficiary of fleeting market conditions but stands to gain from the consolidated solutions it has developed. This sentiment is supported by customer feedback as indicated in the proprietary survey "OS: EPM Survey Supports More Hyper Growth to Come" dated August 26. The survey suggests a positive outlook for OneStream's growth trajectory. OneStream's management expressed optimism about the latter half of the year, citing factors such as their consolidated platform that eases the workload of finance executives, an incremental AI solution that 40% of users are anticipated to adopt within the next year, and the upcoming end-of-life of a legacy product from a competing market leader. Additionally, a significant greenfield opportunity exists in the form of numerous Excel-based solutions that are currently in use. These elements contribute to the firm's decision to reiterate the Buy rating and elevate the price target for OneStream. In other recent news, OneStream Inc. has been the subject of increased attention from multiple financial firms following its robust second-quarter results. Needham and BofA Securities raised their price targets on OneStream to $35 and $36 respectively, maintaining their Buy ratings. The firms' adjustments came after OneStream's Q2 results met the higher end of expected range, with a forecasted third-quarter subscription revenue growth of 35%, surpassing the anticipated 30%. The company's Remaining Performance Obligations (RPO) also saw a year-over-year increase of 41%, reinforcing the perspective of strong market demand. OneStream's management team provided positive insights on the demand for the company's core solutions, with an emphasis on the growing influence of artificial intelligence in their offerings. This focus on AI is expected to subtly boost the company's revenue growth into fiscal year 2025. Truist Securities maintained a Buy rating and a $35.00 price target, emphasizing OneStream's alignment with previous estimates and the importance of the company's upcoming third-quarter and full-year forecasts. Similarly, Scotiabank initiated coverage with a Sector Outperform rating and a $34 price target, highlighting OneStream's transformative role in unifying enterprise systems. Lastly, Needham assigned a Buy rating to OneStream, with a $33 price target, praising the company's integration of machine learning and artificial intelligence technologies into its platform. These recent developments highlight a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position. As OneStream Inc. (NASDAQ:OS) captures the attention of analysts and investors alike, the latest data from InvestingPro provides a more nuanced picture of the company's financial health and market performance. With a substantial market capitalization of $7.1 billion, OneStream is a sizable player, yet it's important to note that the company is not expected to be profitable this year, which aligns with a negative P/E ratio of -212.64. This is reflected in the company's recent performance over the last twelve months as of Q1 2024, where it was not profitable. Despite the lack of profitability, OneStream's revenue growth is impressive, boasting a 39.93% increase in the first quarter of 2024. This robust growth is a testament to the company's ability to expand its market share and could be indicative of future potential. However, investors should consider that the stock is trading at a high revenue valuation multiple and near its 52-week high, with the price at 96.43% of this peak. This suggests that the stock's current valuation is optimistic, expecting continued growth and market expansion. For those considering an investment in OneStream, it's worth noting that the company does not pay a dividend, which may be a factor for income-focused investors. The InvestingPro platform offers additional insights, with 7 more InvestingPro Tips available that could help investors make a more informed decision. To explore these further, visit https://www.investing.com/pro/OS.