In a recent surge of optimism among investors, OneSpan, a notable cybersecurity firm based in Boston, Massachusetts, has seen its stock prices leap by 30% in premarket trading. This uptick comes in the wake of the company’s announcement of an encouraging revenue forecast for the upcoming fiscal year, alongside its quarterly profit figures surpassing expectations. The bullish outlook on cybersecurity services demand, echoed by OneSpan’s larger peer Crowdstrike last week, continues to bolster the cybersecurity sector’s market presence.
OneSpan’s premarket achievement signals its potential best performance in the stock market in nearly eight months, poised to add approximately $115 million to its market valuation. The company has projected its revenue to lie between $238 million and $246 million for fiscal year 2024. This forecast notably exceeds the analysts’ consensus, which was pegged at $239.65 million.
Victor Limongelli, the interim CEO of OneSpan who assumed his role in January, attributed this positive trajectory to the company’s robust operational discipline and decisive cost-cutting measures implemented in the latter half of 2023. Amidst this financial optimism, OneSpan also disclosed a 5% reduction in its workforce over the quarter, aligning with its streamlined operational strategy.
The fourth quarter saw OneSpan achieving an adjusted per-share profit of 19 cents, surpassing the modest expectations of a 3-cent profit, as per LSEG data. This financial milestone has prompted brokerage firm D.A. Davidson to uplift its price target on OneSpan from $9.5 to $12, reflecting confidence in the company’s strategic direction and its suite of digital identity and anti-fraud solutions.
This surge in OneSpan’s market performance comes against the backdrop of the company being a focal point for activist hedge funds like Legion Partners Asset Management last year, with speculations around strategic options, including a potential sale. With a mix of “buy” or higher ratings and “hold” positions from analysts, OneSpan’s median target price stands at $12, marking a significant moment of recognition for the firm in the cybersecurity industry.
