Piper Sandler lowers OneStream stock price target to $28 on growth outlook

Published 08/08/2025, 12:36
Piper Sandler lowers OneStream stock price target to $28 on growth outlook

Investing.com - Piper Sandler has reduced its price target on OneStream Inc. (NASDAQ:OS) to $28.00 from $34.00 while maintaining an Overweight rating on the software company’s stock. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 2.34x.

The adjustment follows OneStream’s second-quarter performance, which showed strong revenue with 26% year-over-year growth, exceeding the midpoint guidance by $6.6 million. U.S. contribution, representing 67% of sales, reaccelerated to 22% growth. The company maintains a robust gross profit margin of 63.35%, though InvestingPro analysis indicates the stock is currently trading in oversold territory.

Despite the Q2 beat, OneStream provided a more conservative third-quarter growth outlook of 14.6%, below Piper Sandler’s previous estimate of 16.7%. The research firm attributed this prudence to elevated scrutiny on U.S. federal budgets and uncertainty related to tariffs mentioned in recent SAP commentary.

Piper Sandler has lowered its second-half estimates for OneStream but increased its full-year projection slightly by $1.8 million, reflecting the $6.6 million Q2 beat partially offset by $4.8 million lower expectations for the second half.

The firm views the Q3 guided growth of 15% as a temporary trough, expecting normalization in U.S. federal seasonality by Q4, but has reduced its five-year compound annual growth rate projection to 21% from 23% previously due to rising execution risk.

In other recent news, OneStream Inc. reported its earnings for the second quarter of 2025, revealing a notable 26% year-over-year increase in total revenue, amounting to $148 million. This figure surpassed the company’s forecast, highlighting a strong financial performance. The earnings announcement, however, coincided with a 5% decline in the company’s stock during aftermarket trading. Market sentiment appeared cautious despite the positive revenue growth, possibly influenced by broader industry trends and specific company challenges. These developments are part of the recent updates regarding OneStream Inc.

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