Piper Sandler has revised its target price for OneStream (OS, Financial), reducing it from $37 to $24, although the shares continue to carry an Overweight rating. This adjustment is part of a broader move by the firm to cut forecasts and price targets across the cloud applications and analytics sector amid ongoing challenges.
The sector is facing notable near-term growth hurdles, exacerbated by tariff implications, policy issues, and obstacles in the adoption of artificial intelligence. These factors have contributed to diminishing investor confidence, marking the fourth consecutive year of moderated industry growth. The firm notes that while the direct impact of tariffs on software models is minimal, the overall sentiment has been significantly affected.
Piper Sandler highlights that valuation multiples are now at their lowest point in seven years, reflecting the pressures on the sector. The continued struggles with AI integration further cloud the growth outlook, suggesting a retreat from the previously optimistic projections.
