Brokerages initiate coverage on backed financial software firm OneStream
** Brokerages J.P. Morgan, Piper Sandler and BTIG initiate coverage on financial software maker OneStream OS.O and expect its sticky business model and improving margins to generate industry-leading growth
** OneStream, backed by private equity firm KKR, debuted on Nasdaq on July 24 and surged nearly 30% on that day on optimism for new listings in the hopes of a soft landing for the U.S. economy
** BTIG initiates coverage with a 'buy' rating and $37 PT saying that OS is "the new gold standard of Office of the CFO software"; adds it sees a path to more than 20% free cash flow margins in the next few years
** Piper Sandler and J.P. Morgan both initiate coverage with 'overweight' rating and PT of $32 and $30, respectively
** Piper Sandler sees a path for a four-fold increase in annualised recurring revenue (ARR) over the next several years due to replacement opportunities of aging/legacy installed financial software
** Brokerage adds OS has an attractive business model with low churn, durable growth and improving free cash flow margins
** As of last close, stock up 6.9% since debut
Reporting by Gokul Pisharody in Bengaluru
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