OneStream Inc. (OS) PT Lowered to $28 at Piper Sandler

Piper Sandler analyst Brent Bracelin lowered the price target on OneStream Inc. (NASDAQ: OS) to $28.00 (from $34.00) while maintaining a Overweight rating.

The analyst comments "Q2 revenue was strong driven by improving U.S. contribution (67% of sales) where growth reaccelerated back to 22%, contributing to a $6.6M top-line beat (vs. mid-point guide) on 26% y/y overall growth (vs. 24% in Q1). However, the company tempered the Q3 growth outlook to 14.6% that was below our prior Q3 estimate of 16.7%. Assigning more prudence to Q3 shouldn't be too surprising given 1) elevated scrutiny on U.S. federal budgets, and 2) SAP commentary last month on tariff uncertainty. We lower our 2H estimates but increase our full-year slightly by $1.8M ($6.6M beat partially offset by $4.8M lower in 2H). Q3 guided growth of 15% should mark a temporary growth trough once U.S. federal seasonality normalizes into Q4. We are lowering our PT to $28 on lower estimates and higher diluted shares baking in rising execution risk that could slow the 5YR CAGR to 21% (vs. 23% prior)."

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