OSPN - OneSpan: Fairly Valued After Its Impressive Cost Cuts But Is Not An Opportunity Yet
2024-05-10 06:48:18 ET
Summary
- OneSpan's 1Q24 results showed a significant reduction in operating expenses and a jump in operating income, leading to a 20% increase in stock price.
- The company has made cuts in corporate and sales, resulting in layoffs and cost savings.
- Despite the expense reduction, OneSpan is struggling to achieve growth, particularly in its Digital Agreements segment.
OneSpan ( OSPN ) is a security and authentication software vendor.
I have covered OneSpan since June 2022 , maintaining a Hold rating. The stock has been flat since against the market, rallying 35%. My latest article, from February 2024 , maintained the Hold rating on the basis of slow execution of the cost reduction plan announced in 2022, and no growth in the company's "growth segment" of Digital Agreements....
OneSpan: Fairly Valued After Its Impressive Cost Cuts, But Is Not An Opportunity Yet