Robert Simmons, CFA, an analyst from D.A. Davidson, has initiated a new Buy rating on Onestream, Inc. Class A (OS).
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Robert Simmons, CFA has given his Buy rating due to a combination of factors that highlight Onestream, Inc.’s strong market position and growth potential. The company is effectively capturing market share from legacy systems with its modern and integrated platform, which is designed to meet the needs of CFOs in financial management. This strategic positioning allows Onestream to target a vast number of companies currently using outdated systems, providing a significant opportunity for growth.
Furthermore, Robert Simmons, CFA anticipates that Onestream will achieve over 20% subscription growth annually, driven by both its core offerings and new initiatives like CPM Express and the Solution Exchange. These developments are expected to expand the company’s market reach and enhance its technological edge. Additionally, Onestream’s expanding margins are projected to double its free cash flow in the next two years, justifying the premium at which its stock trades compared to peers. As the company’s growth and profitability become more evident, Simmons expects the stock to appreciate, supporting his Buy rating with a price target of $26.
Simmons, CFA covers the Technology sector, focusing on stocks such as Workday, BlackLine, and Onestream, Inc. Class A. According to TipRanks, Simmons, CFA has an average return of -7.9% and a 40.00% success rate on recommended stocks.