ON24: Hold Rating Amidst Challenging Market Conditions and Cautious Growth Prospects

ON24 (ONTF – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst David Hynes from Canaccord Genuity maintained a Hold rating on the stock and has a $5.00 price target.

David Hynes has given his Hold rating due to a combination of factors affecting ON24’s current market position. The company has shown progress towards sustainable growth and profitability, with improvements in enterprise momentum and customer retention. However, the macroeconomic environment poses challenges, leading to cautious buying behavior and a downward revision in revenue guidance.
Despite ON24’s efforts to enhance its product offerings and strengthen its team, the demand environment remains difficult, with customers prioritizing cost efficiency. While ON24 is poised to capitalize on opportunities when economic conditions improve, significant top-line growth is unlikely in the near term. As such, Hynes believes it is prudent to maintain a Hold rating until there are clearer indications of sustained growth and improved market conditions.

According to TipRanks, Hynes is an analyst with an average return of -0.3% and a 46.40% success rate. Hynes covers the Technology sector, focusing on stocks such as ServiceNow, Jamf Holding, and Procore Technologies.