Cautious Hold on ON24 Amid Uncertain ARR Outlook and Valuation Concerns

Tip Ranks
2025.11.11 10:55
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William Blair analyst Arjun Bhatia has maintained a Hold rating on ON24 (ONTF) stock due to concerns over the company's uncertain annual recurring revenue (ARR) outlook and valuation issues. Despite a slight beat in third-quarter core platform revenue, ARR declined due to slower new bookings and challenges in the life sciences sector. Management is optimistic about ARR growth into 2026, but Bhatia seeks more evidence of stable growth before upgrading the rating. Another report also reiterated a Hold rating with a $5.00 price target.

William Blair analyst Arjun Bhatia has reiterated their neutral stance on ONTF stock, giving a Hold rating on November 8.

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Arjun Bhatia’s rating is based on a combination of factors that reflect both the challenges and potential opportunities for ON24. The company’s third-quarter core platform revenue exceeded expectations slightly, but the annual recurring revenue (ARR) saw a decline, which was a concern. This decline was attributed to slower growth in new bookings, deal slippage, and specific challenges in the life sciences sector. Despite some positive signs, such as strong enterprise momentum and recovery of previous customers, the overall ARR outlook remains uncertain.
Management has expressed optimism for ARR growth into 2026, and there have been efforts to reduce sales and marketing expenses through improved go-to-market strategies and the use of AI tools. However, with revenue still on the decline and ARR being unpredictable, Bhatia is cautious and seeks more evidence of a stable and growing top-line performance before upgrading the rating. The stock’s valuation, while discounted compared to peers, does not yet provide a clear path to sustained growth, leading to the Hold rating being maintained.

In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5.00 price target.

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