Rimini Street: Litigation Overhang Removed but Modest Growth Keeps Shares Fairly Valued at Hold

Rimini Street, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Derrick Wood from TD Cowen maintained a Hold rating on the stock and has a $4.25 price target.

Derrick Wood has given his Hold rating due to a combination of factors, including Rimini Street’s solid fourth quarter, improving remaining performance obligations, and management’s confidence in sales momentum supported by plans to expand sales capacity and increase quotas. At the same time, overall revenue growth remains modest, with certain regions and product lines showing flat or negative trends, and customer metrics such as retention and net new clients reflecting only incremental progress rather than a clear inflection.

Rimini Street now operates without the prior litigation overhang and is pursuing growth initiatives like its partnership with ServiceNow and Agentic AI for ERP, which could support better performance in the second half and beyond. However, despite an undemanding valuation on a free cash flow basis, Wood views the shares as fairly valued until the company can demonstrate a more sustained and meaningful reacceleration of growth, leading him to maintain a Hold rating rather than move to a more aggressive stance.