Rimini Street: Promising Long-Term Targets Amid Short-Term Challenges Lead to Hold Rating

Analyst Derrick Wood from TD Cowen maintained a Hold rating on Rimini Street and keeping the price target at $5.00.

Derrick Wood has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for Rimini Street. The company has re-established guidance, with long-term targets appearing promising, particularly with revenue and EBITDA margin projections for FY26 exceeding previous estimates. However, the short-term outlook for the fourth quarter fell below expectations, with revenue and EBITDA guidance not meeting prior forecasts.
Additionally, while Rimini Street’s strategic initiatives, such as the introduction of the Agentic AI ERP and increased focus on channel alliances and public sector opportunities, are encouraging, these changes are expected to take time to materialize fully. The removal of litigation overhang is a positive step, potentially facilitating partnerships, yet execution against these strategic targets remains crucial. Thus, while there are promising signs, the need for sustained execution and the mixed short-term guidance have led to a Hold rating.

According to TipRanks, Wood is a 4-star analyst with an average return of 6.0% and a 47.98% success rate. Wood covers the Technology sector, focusing on stocks such as Oracle, Salesforce, and Adobe.