OneStream Inc (NASDAQ:OS) seems poised to generate total revenue growth of nearly 20% annually over the next few years, while significantly expanding its operating and cash flow margins, according to Rosenblatt Securities.
The OneStream Analyst: Analyst Robert Simmons initiated coverage with a Buy rating and price target of $26.
The OneStream Thesis: The company has been gaining market share from the large existing base of legacy systems, Simmons said in the initiation note.
Check out other analyst stock ratings.
OneStream's platform is a "modern, integrated, and highly usable system," which has enabled the company to target "the roughly 15K companies using Hyperion today, the thousands more on similar old standalone products by SAP and IBM, and many more using basic ERP functionality and Excel to perform close, consolidation, and reporting," the analyst wrote. This gives the company a long runway for growth, he added.
Existing and new products will allow the company to expand the addressable market and generate over 20% subscription growth for several years, Simmons stated.
Non-GAAP operating margins could expand to 10% and cash flow margins to 20% through 2027, he further said.
OS Price Action: OneStream shares were up 2.33% at $21.09 at the time of publication on Tuesday, according to Benzinga Pro data.
OneStream operates in the competitive software sector, with a market cap of $3.97 billion, indicating significant investor interest in its growth potential. Its 52-week range of $16.51 to $32.04 suggests considerable volatility, reflecting market uncertainty and the challenges faced by tech firms in adapting to rapid changes in demand and innovation.
Read More:
Photo: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
