Rosenblatt Maintains Buy on OneSpan (OSPN) Despite Hardware Revenue Weakness

OneSpan Inc. (NASDAQ:OSPN) is one of the most undervalued cybersecurity stocks to buy now. On August 6, Rosenblatt analyst Catherine Trebnick maintained her Buy rating on OneSpan Inc. (NASDAQ:OSPN), while lowering the price target to $17 from $20. However, the current price target still represents a 23% upside from the current market price of $13.82. Trebnick reduced the company’s revenue outlook after the management said that it expects the softness in its hardware business to persist in the second half of this year. The hardware business accounts for nearly a third of the company’s revenue as of the end of 2024.

Rosenblatt Maintains Buy on OneSpan (OSPN) Despite Hardware Revenue Weakness

An executive in a meeting room surrounded by digital screens discussing data security requirements.

The company reported a revenue of $59.84 million in Q2, a 1.77% decline on a year-over-year basis. However, the company’s net income rose to $8.34 million, a 27.3% increase from the same quarter last year. That said, the company’s net margin narrowed from the previous quarter from 22.89% to a still healthy 13.94%.

OneSpan Inc. (NASDAQ:OSPN) is a leader in digital identity and authentication solutions. The company is seeing a strategic transformation through product innovation and targeted M&A. The stock is a great option for growth-oriented investors through its focus on authentication without the need for a password, enterprise integration, and digital workflows.

While we acknowledge the potential of OSPN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OSPN and that has a 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.