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On Friday, Piper Sandler increased the price target for OneStream Inc. (NASDAQ:OS) shares to $34 from $32, while maintaining an Overweight rating. The stock, currently trading at $28.11 with a market capitalization of $5 billion, has shown strong momentum with an 8.66% gain over the past week. According to InvestingPro data, 8 analysts have recently revised their earnings estimates upward for the upcoming period. The adjustment follows OneStream’s annual Splash user conference held in Nashville, where the company introduced several new products supporting its "Three Pillar" growth strategy. This approach is anticipated to accelerate the acquisition of new customers and expand business with existing ones.
During the conference, OneStream showcased new offerings that could potentially enhance the company’s growth trajectory by improving the velocity at which it acquires new customers and by driving broader expansions within its current customer base. The firm’s high gross retention rate, which stands at 98%, bolsters Piper Sandler’s confidence in OneStream’s vendor consolidation opportunities over the next three to five years. The company’s strong operational metrics, including a 63.35% gross margin and impressive revenue growth of 26.83% in the last twelve months, support this optimistic outlook.
Despite acknowledging the challenges in predicting the timing of new contracts due to federal, tariff/policy changes, and macroeconomic uncertainties, Piper Sandler remains optimistic about OneStream’s future. The firm’s analysts suggest that OneStream’s annual recurring revenue (ARR) could potentially double to over $1.1 billion within the next four years. While currently unprofitable, InvestingPro analysis indicates that analysts expect the company to achieve profitability this year, with a healthy current ratio of 2.34 supporting its financial stability.
The recommendation from Piper Sandler comes as an encouragement for small-cap growth investors to seize the opportunity presented by the 20% decline from OneStream’s 52-week highs. The analysts believe investors should consider adding to their positions now, in anticipation of a potential rebound in 2026. The raised price target to $34 reflects higher estimates after incorporating the potential impact of new products, with the firm maintaining its Overweight rating on OneStream Inc. stock. For a deeper understanding of OneStream’s valuation and growth prospects, investors can access comprehensive analysis and 10+ additional exclusive ProTips through InvestingPro’s detailed research reports.
In other recent news, OneStream Inc. has announced significant financial and strategic developments. The company reported a robust first-quarter performance with subscription revenue growth of 30.7% and subscription billings accelerating to 37%. This growth is attributed to deals that were delayed from the previous quarter, and the company has maintained its revenue guidance for fiscal year 2025. Additionally, OneStream introduced its SensibleAI™ portfolio at the Splash 2025 conference, unveiling new AI tools aimed at enhancing forecasting and decision-making for finance teams. These tools include SensibleAI Agents and SensibleAI Forecast, which are designed to improve forecasting accuracy and streamline financial processes.
Analysts have responded positively to OneStream’s recent activities. Mizuho (NYSE:MFG) Securities raised its price target for OneStream’s stock to $33, maintaining an Outperform rating, citing the company’s transition into an AI-powered platform and its potential to replace legacy systems. Needham also maintained a Buy rating with a $38 price target, highlighting the company’s focus on generative AI and its strategy of productization and verticalization. Stephens analyst Brett Huff increased the price target to $30, emphasizing OneStream’s strong fundamentals and growth opportunities.
OneStream’s strategic initiatives, particularly its focus on AI and innovative product offerings, have resonated with analysts and are expected to contribute to its competitive edge. The company’s improved pro forma EBIT margin and strong free cash flow margin further reinforce its long-term profit outlook. These developments position OneStream as a key player in the enterprise finance management sector, with a focus on leveraging AI to support better planning and forecasting.
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