Mayank Tandon, an analyst from Needham, reiterated the Buy rating on Alkami Technology (ALKT – Research Report). The associated price target is $54.00.
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Mayank Tandon has given his Buy rating due to a combination of factors that highlight Alkami Technology’s strong performance and growth prospects. The company reported robust fourth-quarter results, with a notable 25% year-over-year increase in subscription revenue and better-than-expected profit margins.
Additionally, Alkami’s strategic acquisition of MANTL, a prominent SaaS provider for account opening and onboarding, is expected to enhance its market position by attracting new clients and expanding its total addressable market. Although the acquisition may slightly impact EBITDA margins in the short term, the guidance for the first quarter and full year 2025 remains strong, underscoring industry-leading subscription revenue growth. Tandon’s confidence in Alkami is further supported by the company’s predictable revenue model, potential for margin improvement, and significant growth opportunities, leading to the reaffirmation of a Buy rating and a $54 price target.
According to TipRanks, Tandon is an analyst with an average return of -2.3% and a 38.96% success rate. Tandon covers the Technology sector, focusing on stocks such as Euronet Worldwide, Globant SA, and Grid Dynamics Holdings.