Truist Securities recently launched coverage on OneStream Inc. (NASDAQ: OS) with a Buy rating. The firm set a price target of $35.00 for the company, emphasizing OneStream’s prominent position as a leading cloud platform within the corporate performance management (CPM) market, also recognized as Office of CFO software.
OneStream stands out for its innovative and comprehensive platform comprising essential financial applications like financial close and consolidation, financial and operational planning and analysis, and financial and operational reporting. The platform extends beyond to encompass additional finance and operational use cases as well as applied artificial intelligence applications.
Truist Securities expressed confidence in OneStream’s ability to maintain robust growth at scale and achieve profitability shortly. The firm highlighted the company’s positive free cash flow (FCF) as a supporting factor for the positive outlook on the stock.
Despite extensive revenue numbers over the past twelve months, OneStream has yet to achieve profitability, reflected in an adjusted P/E ratio of -415.67. While this may raise concerns about near-term profitability, Truist Securities remains optimistic about the company’s potential to turn profitable. OneStream’s stock currently trades close to its 52-week high, indicating strong market favorability towards the stock.
InvestingPro data and tips provide further insights for investors considering OneStream shares. With a market capitalization of $6.62 billion, the company’s high revenue valuation multiple reflects the market’s high expectations for its growth prospects. OneStream’s revenue for the last twelve months as of Q1 2024 shows substantial quarterly revenue growth of 39.93%, in line with Truist Securities’ outlook on sustained growth.
InvestingPro also notes that OneStream’s stock generally exhibits low price volatility, appealing to investors seeking stability in their investments. However, the stock’s Relative Strength Index (RSI) suggests it is currently in overbought territory, hinting at a potential pullback or leveling-off in the near future.
For a more in-depth analysis, interested investors can access additional InvestingPro Tips at https://www.investing.com/pro/OS, offering deeper insights into OneStream’s financial health and stock performance. These insights can guide investors in making informed decisions by considering various aspects of the company’s financial status and market behavior.
