Sidoti downgrades OneSpan to Neutral on its valuation sees shares trading within 10% of PT
OneSpan (NASDAQ:OSPN) was downgraded to Neutral from Buy at Sidoti & Company, eyeing the cybersecurity firm’s valuation.
“While we think the company is making good progress on its turnaround, the turnaround is still in its early stages. We need to see further improvement before becoming more constructive on our estimates and valuation,” said Sidoti analyst who also noted OSPN shares trading within 10% of its $12 price target.
Sidoti added that cost reductions at OSPN were nearly completed and the sales force was more experienced. For 2024, the company’s focus would be on driving continued operational efficiencies and exploring further areas for growth.
“Our $12 price target is based on 14x our intact 2025 GAAP earnings per share estimate of $0.87. As we get more visibility on our projections we may get more constructive on our valuation,” the financial services firm commented.
Seeking Alpha’s Quant Ratings system recommended OneSpan as a Buy, noting strength in its growth and valuation.
Since the start of the year, OneSpan has risen about 9%, while on a 12-month reading, the stock is down by about a third.
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