OneStream shares initiated with Buy rating, price target set by TD Cowen

On Monday, TD Cowen began coverage of OneStream Inc. (NASDAQ:OS) with a positive outlook, assigning the stock a Buy rating and setting a price target of $34.00. The firm highlighted OneStream’s development of an extensive platform designed to modernize the Office of the CFO by unifying financial and operational data.

TD Cowen pointed to the company's potential for sustained long-term growth, citing an anticipated growth rate of approximately 20% or more. This growth is expected to stem from the replacement of legacy systems, the introduction of new use-cases for the platform, and high client retention rates.

The firm also noted OneStream's disciplined approach to costs as a factor that could contribute to significant free cash flow (FCF) margin expansion.

The analyst's commentary underscored OneStream's position at the forefront of the modernization wave for CFO offices, providing a single source of truth across various data types. This capability is seen as a key differentiator for the company in the market.

The stock price target of $34.00 set by TD Cowen reflects the firm's confidence in OneStream's strategy and market position. The target suggests a favorable outlook for the company's shares in the eyes of the firm.

Overall, TD Cowen's initiation of coverage on OneStream with a Buy rating and a $34.00 price target is based on the company's robust platform, potential for significant growth, and strong free cash flow prospects.

In other recent news, multiple financial firms have initiated coverage on OneStream Inc., providing a range of ratings and price targets. Truist Securities set a Buy rating with a $35 target, emphasizing OneStream's position as a market-leading cloud platform in the corporate performance management market.

JPMorgan also initiated coverage, providing an Overweight rating and a $30 price target, commending OneStream's robust financial performance and high customer retention rate.

However, Citi offered a more balanced perspective with a Neutral rating and a $34 target, acknowledging OneStream's strong position but also its high enterprise value to revenue multiple. BTIG expressed confidence in OneStream's potential for industry-leading growth and margin improvements, initiating coverage with a Buy rating and a $37 target.

These recent developments underscore OneStream's strong position and anticipated trajectory within the corporate performance management space.

InvestingPro Insights

As we delve into the financial metrics of OneStream Inc. (NASDAQ:OS), the InvestingPro Data provides a comprehensive snapshot of the company's current market standing. With a market capitalization of $6.62 billion and a striking revenue growth rate of nearly 40% for Q1 2024, OneStream showcases a robust expansion in its operations. Despite not being profitable over the last twelve months, the company's gross profit margin stands at an impressive 69.79%, indicating strong underlying business efficiency.

According to InvestingPro Tips, OneStream operates with a moderate level of debt, which could be a sign of prudent financial management. Moreover, the stock is trading near its 52-week high, reflecting investor confidence and a potential alignment with TD Cowen's positive outlook.

However, the stock's RSI suggests it is currently in overbought territory, which may warrant caution among potential investors. For those considering OneStream as an investment, it is worth noting that the company does not pay a dividend, which might influence the investment decisions of income-focused shareholders.

InvestingPro offers additional insights and tips for OneStream, providing investors with deeper analysis to inform their investment decisions. For more detailed information, visit InvestingPro's OneStream page, which includes numerous additional tips to guide potential investors.

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