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OneStream’s Strong Q4 Performance and Long-Term Prospects Justify Buy Rating Despite Short-Term Challenges

OneStream’s Strong Q4 Performance and Long-Term Prospects Justify Buy Rating Despite Short-Term Challenges

Koji Ikeda, an analyst from Bank of America Securities, reiterated the Buy rating on Onestream, Inc. Class A (OSResearch Report). The associated price target is $36.00.

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Koji Ikeda’s rating is based on OneStream’s solid performance in the fourth quarter of 2024, which exceeded both Ikeda’s and market expectations, despite a challenging backdrop due to factors like geopolitical and regulatory uncertainties. Although the revenue guidance for 2025 was mostly in line with expectations, the non-GAAP operating margin guidance was below consensus. However, Ikeda views this as a temporary issue, attributing some of the softer outlook to elevated foreign exchange pressures and strong SaaS conversions that impact upfront revenue recognition.
Despite these short-term challenges, Ikeda remains optimistic about OneStream’s long-term prospects. He highlights the company’s differentiated platform and strong SaaS Annual Recurring Revenue (ARR) growth, which increased by 40% year-over-year. Furthermore, Ikeda points to several strategic initiatives, including Corporate Performance Management Express and increasing ESG requirements, as potential growth drivers. These factors collectively underpin his Buy rating and the $36 price objective, which implies a 20% upside from the current share price.

According to TipRanks, Ikeda is a 5-star analyst with an average return of 16.9% and a 61.10% success rate. Ikeda covers the Technology sector, focusing on stocks such as BlackLine, Datadog, and Elastic.

In another report released today, Needham also reiterated a Buy rating on the stock with a $38.00 price target.

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