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Onestream, Inc.: Strong Market Position and Growth Potential Justify Buy Rating Amid Conservative Projections

Onestream, Inc.: Strong Market Position and Growth Potential Justify Buy Rating Amid Conservative Projections

Onestream, Inc. Class A (OSResearch Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Daniel Jester from BMO Capital maintained a Buy rating on the stock and has a $34.00 price target.

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Daniel Jester has given his Buy rating due to a combination of factors that highlight Onestream, Inc.’s potential for growth and market leadership. The company showed moderate upside in revenue and margin improvements, despite softer near-term growth guidance. A notable factor is the company’s annual recurring revenue (ARR) growth of over 25% when excluding foreign exchange impacts, showcasing resilience against economic challenges and indicating a strong market position.
Furthermore, Onestream is recognized for its ability to capture market share in the ‘Office of the CFO’ segment and its progress in monetizing AI technologies. While some deals were delayed, management remains optimistic about closing these transactions and accelerating AI-related deal velocity. The company’s solid free cash flow and steady improvement in EBIT margins further reinforce its financial health, supporting the Buy recommendation despite conservative future revenue and margin projections.

In another report released today, TD Cowen also maintained a Buy rating on the stock with a $34.00 price target.

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