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On Wednesday, BofA Securities adjusted its outlook on OneStream Inc. (NASDAQ:OS), increasing the share price target to $36, up from the previous $35, while retaining a Buy rating.
The adjustment follows OneStream's release of its second-quarter financial results for the fiscal year 2024, which exceeded both the firm's and the Street's expectations.
OneStream, a newcomer to the public market, demonstrated robust performance in its first earnings call, outperforming in key financial areas. The company's total revenues, non-GAAP operating income, and free cash flow for the second quarter surpassed projections.
Moreover, the guidance provided for the third quarter and the initial full-year forecast for total revenues and non-GAAP operating income are in line with current estimates.
The positive results have reinforced BofA Securities' bullish stance on OneStream. The firm's analysis suggests that OneStream is positioned to capture a significant portion of the $44 billion total addressable market (TAM) identified in their initiation report dated August 19. The firm's confidence in OneStream's ability to gain market share and execute effectively has led to the revised price objective.
The analyst from BofA Securities highlighted the company's execution and upwardly revised estimates as the basis for the price target increase. This endorsement underlines the firm's expectation of continued strong performance from OneStream in the financial software sector.
The new price target of $36 reflects a modest increase from the previous target but signals a continued positive outlook for OneStream's stock. Investors will likely watch the company's progress closely as it aims to fulfill the expectations set forth by its recent financial results and the analyst's projections.
InvestingPro Insights
OneStream Inc. (NASDAQ:OS) has shown a remarkable revenue growth of 39.93% in the last quarter, as reflected in the company's recent financial statements, underpinning the optimistic assessment by BofA Securities. The company's market capitalization stands at $7.1 billion, highlighting its significant presence in the financial software sector. Despite this, analysts are not expecting the company to be profitable this year, which aligns with the current P/E ratio of -212.64, indicating that investors are paying a premium for the company's growth prospects.
InvestingPro Tips suggest that OneStream is trading near its 52-week high, with the price at 96.43% of this peak. This could indicate a strong market confidence in the company's trajectory, despite the lack of dividend payments to shareholders. Additionally, the gross profit margin of 69.79% in the last twelve months showcases the company's ability to maintain profitability on its core operations.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, offering a comprehensive view of OneStream's financial health and market performance. Visit https://www.investing.com/pro/OS for further insights and to explore the full range of actionable tips.
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