Analyst Scott Berg from Needham maintained a Buy rating on Onestream, Inc. Class A and keeping the price target at $38.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Scott Berg has given his Buy rating due to a combination of factors including Onestream, Inc.’s strong second-quarter performance, driven by robust sales momentum in both the US commercial and European markets. The increasing demand for the company’s CRM Express solution is also playing a significant role in its growth, particularly in the US commercial sector. Despite a slight reduction in the second half guidance due to uncertainties in the US Federal segment, which is seasonally affected in the third quarter, the company projects a rebound in the fourth quarter with guidance exceeding 20%.
Additionally, the company’s first-half free cash flow nearly doubled year-over-year, indicating improved scale and better management of working capital. The early success and positive feedback on Onestream’s Sensible AI platform also suggest potential for further growth. These factors collectively support the Buy rating, reflecting confidence in the company’s ability to overcome short-term challenges and achieve long-term growth.
According to TipRanks, Berg is an analyst with an average return of -5.9% and a 37.19% success rate. Berg covers the Technology sector, focusing on stocks such as PROS Holdings, Amplitude, and Onestream, Inc. Class A.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $28.00 price target.