BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - Goldman Sachs has reiterated its Conviction Buy rating and $33.00 price target on OneStream Inc. (NASDAQ:OS), currently valued at $5.7 billion, ahead of its second-quarter 2025 earnings report scheduled for August 7. The stock, trading at $23.79, aligns with InvestingPro’s Fair Value assessment, while analyst targets range from $26 to $38, reflecting strong bullish sentiment with a consensus rating of 1.45.
The investment bank expects OneStream to continue its pattern of quarterly earnings beats, which have averaged approximately $5 million in the three quarters since the company went public. While not profitable in the last twelve months, InvestingPro data shows 8 analysts have revised their earnings upwards, with expectations of profitability in FY2025. Goldman Sachs also anticipates OneStream will likely deliver its first fiscal year 2025 guidance raise following a reiteration in the first quarter.Want deeper insights? Access the comprehensive Pro Research Report for OneStream, part of InvestingPro’s coverage of 1,400+ top US stocks.
Despite industry-wide scrutiny affecting software budgets and causing some pauses in digital transformation projects, peer companies in the Office of the CFO space have reported resilient second-quarter results. OneStream maintains strong fundamentals with 26.8% revenue growth and a healthy current ratio of 2.34, indicating robust liquidity. These results align with peer performance, including SAP with cloud computing business growth of 27% compared to 28% in the first quarter, Blackline with annual recurring revenue growth of 9% year-over-year versus 8% in the first quarter, and Workday (NASDAQ:WDAY) with current remaining performance obligations up 23% year-over-year compared to 24% in the first quarter.
Goldman Sachs believes these peer results provide underlying support for OneStream’s fundamental outperformance against more cautious market expectations. The firm’s research suggests OneStream can maintain 20%+ growth for at least the medium term.
According to Goldman Sachs, investor conversations indicate that OneStream’s stock performance moving forward will depend on the magnitude of quarterly beats and subsequent adjustments to full-year guidance as investors seek confidence in sustainable demand for Office of the CFO software solutions.
In other recent news, OneStream Inc. has received notable attention from several analyst firms following its annual Splash user conference in Nashville. Piper Sandler has raised the company’s stock target to $34, citing new product introductions that align with OneStream’s "Three Pillar" growth strategy, which aims to boost customer acquisition and expansion. Similarly, Mizuho (NYSE:MFG) Securities increased its price target to $33, recognizing OneStream’s transition into an AI-powered platform for finance and operations. William Blair initiated coverage on OneStream with an Outperform rating, highlighting the company’s significant growth, including a revenue increase of over 30% in 2024. Truist Securities maintained its Buy rating with a $31 target, expressing confidence in OneStream’s ability to sustain high subscription revenue growth. Needham also reiterated a Buy rating with a $38 target, showing optimism for OneStream’s near-term sales opportunities. These developments indicate strong analyst confidence in OneStream’s future performance and strategic direction.
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