In a report released today, Scott Berg from Needham reiterated a Buy rating on Onestream, Inc. Class A (OS – Research Report), with a price target of $38.00.
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Scott Berg’s rating is based on a combination of factors that highlight both challenges and potential strengths for Onestream, Inc. The company reported strong revenue and operating income for the fourth quarter, but faced delays in deal closures due to macroeconomic uncertainties and foreign exchange impacts, which affected their financial outlook for FY25. Despite these challenges, the company’s FY24 net new Annual Recurring Revenue (ARR) was slightly lower than the previous year, a situation attributed largely to extended deal cycles and currency pressures.
Despite these headwinds, Scott Berg maintains a Buy rating, citing the favorable end market conditions and consistent demand for Onestream’s well-positioned product. The expectation is that the shares might face some short-term challenges until the first quarter results demonstrate that the issues experienced in the fourth quarter were temporary. The analyst believes that the company’s ongoing investment in growth will eventually lead to a more positive financial outcome.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $37.00 price target.