How are energy investors positioned?
On Friday, Stephens analyst Brett Huff increased the price target on OneStream Inc. (NASDAQ: OS) to $30.00, up from the previous $27.00, while sustaining an Overweight rating on the shares. The new target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $23 to $40, with a strong buy consensus rating of 1.6. Huff’s commentary highlighted the company’s solid first quarter performance, which he believes could refocus investor attention on OneStream’s strong fundamentals, market position, and growth opportunities. With a current market capitalization of $4.29 billion, OneStream trades slightly above its Fair Value according to InvestingPro analysis.
The analyst noted several key points from OneStream’s recent performance, including a pipeline, billings, and calculated remaining performance obligations (CRPO) that might alleviate concerns following the fourth quarter’s missed deals. The company saw a 600 basis points sequential growth acceleration in billings, which Huff suggested could be a positive indicator for near-term revenue. This optimism is supported by OneStream’s impressive revenue growth of 26.83% over the last twelve months, according to InvestingPro data, which offers comprehensive financial metrics and analysis through its Pro Research Reports covering 1,400+ US stocks.
OneStream’s improved pro forma EBIT margin, which exceeded expectations in the first quarter and saw a forecast increase for 2025 from 0% to 1%, was also mentioned. While InvestingPro data indicates the company is not yet profitable over the last twelve months, analysts predict profitability this year with an EPS forecast of $0.08 for 2025. The company maintains a healthy gross profit margin of 63.35% and strong free cash flow generation, with FCF margin rising to 26% from the fourth quarter’s 19%, reinforcing the long-term profit outlook.
Furthermore, OneStream reiterated its guidance for over 20% revenue growth in 2025, with foreign exchange benefits being offset by a heightened sense of prudence. The slight beat in the second quarter revenue guidance and a 19% year-over-year increase provides additional comfort for the 2025 outlook. International revenue growth was robust, growing 40% year-over-year and now constituting 30% of the total revenue.
The analyst’s decision to maintain an Overweight rating and adjust the price target upward reflects confidence in OneStream’s ability to continue its growth trajectory and deliver value to its investors.
In other recent news, OneStream Inc. reported a 24% year-over-year increase in total revenue for the first quarter of 2025, reaching $136 million, with subscription revenue climbing by 31%. The company ended the quarter with $594 million in cash and a record free cash flow of $36 million, reflecting a 26% margin. Despite these strong financial results, OneStream’s stock experienced a decline in after-hours trading. Citi analyst Steven Enders raised OneStream’s stock target to $27.00 from $24.00, maintaining a Neutral rating due to a balanced risk/reward profile. Meanwhile, Needham reiterated a Buy rating with a $38.00 price target, highlighting OneStream’s improved sales execution and robust subscription revenue growth of 30.7%. The company’s strategic focus on go-to-market initiatives for products like Sensible ML and CPM Express is expected to enhance demand, according to Citi. OneStream maintained its full-year 2025 revenue guidance, incorporating a degree of conservatism due to economic uncertainties. The company projects operating profitability by the third quarter of 2025, driven by its effective operational model.
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