Goldman Sachs thinks there are more gains ahead for OneStream . Analyst Adam Hotchkiss initiated coverage finance management software maker with a buy rating and 12-month price target of $37 a share, which suggests 21.5% upside. Shares of the company, which went public in late July, have rallied 52% since their debut. Still, Hotchkiss sees more gains ahead for OneStream given its revenue growth potential, platform offerings to CFOs, as well as management’s ability to drive margin expansion. The company uses artificial intelligence-powered software to help companies with financial planning and budgeting. OS YTD mountain One Stream performance this year. “We view OneStream’s durable revenue growth and high retention since FY23, despite an overall challenging operating environment for software, as emblematic of the strength in the company’s core CPM [corporate performance management] offering,” the analyst wrote in a note. When that offering is “combined with the multiple levers at management’s disposal to drive margin expansion over time and industry-leading innovation capabilities, [it] creates compelling valuation support for OneStream vs. peers,” he added. OneStream is poised see at least 20% compounding growth “for the foreseeable future” as the company grows its consumer base, Hotchkiss said. Many companies are currently going through a digital finance transformation and upgrading their cloud platforms, he noted, adding that many are also “increasingly favoring horizontal platforms that provide essential functionality,” boosting OneStream’s platform. OneStream posted third-quarter financial results on Nov. 7 that reflected a smaller-than-expected loss and beat FactSet consensus revenue expectations. The company also exceeded consensus guidance forecasts for the current quarter. The stock is well liked by analysts overall. LSEG data shows that 13 of 15 analysts who cover OneStream rate it as a buy. The average price target also points to 20% upside.
