Alkami Technology, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mayank Tandon from Needham reiterated a Buy rating on the stock and has a $40.00 price target.
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Mayank Tandon has given his Buy rating due to a combination of factors including Alkami Technology’s strong performance in the second quarter, where the company exceeded expectations across various metrics. The impressive 35% year-over-year growth in subscription revenue and improved margins highlight the company’s robust financial health.
Furthermore, Alkami Technology’s ability to secure new clients and successfully cross-sell with MANT demonstrates its effective business strategy. Despite a one-time client termination fee impacting revenue guidance for FY25, the management’s decision to raise the full-year EBITDA guidance reflects confidence in the company’s scalability and future growth. Tandon believes that Alkami’s essential SaaS solutions, predictable revenue streams, and enhanced margin profile make it an attractive investment, particularly in uncertain economic conditions. The stock is expected to appreciate as the company meets its financial targets for FY25 and FY26, supporting the reiterated Buy rating and a price target of $40.
Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALKT in relation to earlier this year.