Goldman Sachs analyst Adam Hotchkiss initiated coverage on OneStream, Inc. ( OS ) with a Buy rating and a price target of $37.

Hotchkiss says that OneStream’s consistent revenue growth and high retention since FY23, despite a challenging environment for software, highlight the strength of its core CPM offering.

The analyst notes OneStream’s unified CPM platform presents a durable demand opportunity as companies increasingly prefer horizontal, extensible, and innovative solutions.

This shift is driven by the need to diversify from legacy systems, adapt to a rapidly evolving technology landscape, and optimize software costs in an ecosystem crowded with point solutions, adds the analyst.

The analyst says that its platform’s extensibility and innovation leadership for the Office of the CFO position it to expand its total addressable market (TAM) and enhance win rates over time.

Additionally, Hotchkiss writes that OneStream’s management is well-positioned to achieve margin expansion as the business scales.

Furthermore, the company’s strong net cash position and growing free cash flow (FCF) provide flexibility for strategic capital allocation, adds the analyst.

Price Action: OS shares are up 3.26% at $31.44 at the last check Wednesday.

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