On Wednesday, TD Cowen maintained its optimistic stance on OneStream Inc. (NASDAQ: OS), reiterating a Buy rating and a price target of $34.00. The firm's assessment follows OneStream's second-quarter results, which aligned with preliminary guidance. The company reported a 40% increase in software revenues and a 41% rise in calculated remaining performance obligations (cRPO).
The third-quarter guidance provided by OneStream matched analyst expectations, while the forecast for the full year 2024 was slightly higher at the upper end. TD Cowen expressed confidence, highlighting the company's positive remarks about the current macroeconomic and demand environment, strong second-half pipelines, machine learning adoption trends, and the early phases of its replacement and modernization opportunities.
The firm's endorsement comes as OneStream continues to demonstrate robust growth, with TD Cowen anticipating a long-term sustainable growth rate of over 20%. This projection is based on the company's recent financial performance and strategic initiatives, which seem to resonate well with market demands.
OneStream's focus on innovation and expansion in machine learning, coupled with its strategic positioning to capitalize on replacement and modernization opportunities, were key factors influencing TD Cowen's reiterated rating. The company's consistent growth trajectory and alignment with industry expectations have contributed to its positive outlook among investors.
In conclusion, TD Cowen's reiteration of a Buy rating and a $34.00 price target on OneStream Inc. underscores the firm's confidence in the company's growth prospects and strategic direction. The analyst firm's commentary provides an insight into OneStream's market performance and future potential, supporting the view that the company is well-positioned for continued success.
In other recent news, OneStream Inc. has been the subject of several positive financial assessments. Following robust Q2 results, Piper Sandler increased its stock price target for OneStream to $34.00, maintaining an Overweight rating. The company reported a 36% revenue growth, surpassing analyst estimates, and a significant 44% increase in subscription services. Loop Capital also reiterated a Buy rating with a $35.00 price target, citing the company's impressive financial performance and potential for growth.
Analysts from Baird, Guggenheim, Needham, and BofA Securities all raised their price targets for OneStream, maintaining Buy ratings. These adjustments came after OneStream's Q2 results met the higher end of expected range, with a forecasted third-quarter subscription revenue growth of 35%, surpassing the anticipated 30%.
Guggenheim maintained its Buy rating on OneStream stock and increased the price target to $35 from $34, following OneStream's strong performance in the second quarter of 2024. The company showcased a robust 36% revenue growth and a 31% growth in Annual Recurring Revenue (ARR), alongside its third consecutive quarter of positive Free Cash Flow (FCF).
Needham raised the price target on OneStream to $35 from $33 while maintaining a Buy rating on the shares. The adjustment follows OneStream's reported second-quarter results, which met the high end of the company's expected range. The company's fiscal year 2024 revenue guidance encompassed analyst estimates, with third-quarter subscription revenue growth forecasted at 35%, surpassing the anticipated 30%.
These recent developments highlight a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position. However, investors are advised to focus on OneStream's performance relative to the upcoming third quarter of 2024 and the full year's estimates to gauge the company's progress.
InvestingPro Insights
According to the latest data from InvestingPro, OneStream Inc. (NASDAQ: OS) is trading at a high revenue valuation multiple, which aligns with TD Cowen's positive stance and the company's significant growth in software revenues and calculated remaining performance obligations (cRPO). Despite not being profitable over the last twelve months, OneStream's revenue growth remains impressive, with a quarterly increase of nearly 40%. This suggests that the company's strategic initiatives and focus on innovation are translating into tangible financial growth.
OneStream's stock has been trading near its 52-week high, indicating strong market confidence, which is further supported by a 14.56% year-to-date price total return. The InvestingPro Tips also highlight that the stock generally trades with low price volatility, providing a potentially stable investment despite the lack of profitability in the current year. With a market capitalization of $7.1 billion and a robust gross profit margin of 69.79%, OneStream's financial health appears solid as it continues to navigate the competitive landscape.
For those interested in further analysis and additional perspectives, there are more InvestingPro Tips available for OneStream, which can be found at https://www.investing.com/pro/OS. These tips offer valuable insights for investors looking to make informed decisions about their investments in OneStream Inc.
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