Needham analyst Scott Berg has maintained their bullish stance on OS stock, giving a Buy rating today.
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Scott Berg has given his Buy rating due to a combination of factors that highlight Onestream, Inc.’s strong financial performance and promising growth prospects. The company reported significant improvements in sales execution during the first quarter, resulting in a notable financial outperformance. Subscription revenue growth remained robust, exceeding 30%, which is particularly impressive given the challenging comparisons. Additionally, subscription billings saw an acceleration to 37%, benefiting from deals that had been delayed in the previous quarter.
Another factor contributing to the Buy rating is the company’s successful expansion into the downmarket segment through its CPM Express platform, where sales have surpassed expectations. Despite potential macroeconomic challenges, these have not yet impacted sales cycles. The company’s operating model is showing steady progress towards profitability, with the expectation of achieving operating profitability by the third quarter of 2025. These elements combined provide a strong foundation for the Buy recommendation.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $29.00 price target.