B.Riley initiated coverage on OneSpan Inc. (NASDAQ:OSPN) with a Buy rating and a $23 price target, citing strong fundamentals and growth prospects in the cybersecurity and digital identity markets.
The firm highlighted OneSpan’s leadership in multi-factor authentication (MFA), used by banks and financial institutions to secure customer transactions. Analysts noted demand for MFA was accelerating, with artificial intelligence acting as a new catalyst. The company’s eSignature solutions were also seen as a driver of growth in a high-potential market.
B.Riley pointed to OneSpan’s blue-chip customer base, strong compliance-driven differentiation, and execution under CEO Victor Limongelli, who took the helm in early 2024. Financially, subscription revenue accounted for more than 60% of sales, adjusted EBITDA margins stood around 30%, and the dividend yield was 3%.
Despite shares declining 26% year-to-date, the firm said the stock’s valuation of 8.6x CY27E EPS presented a buying opportunity.
