Sherman Keeps Hold on Balanced Risk-Reward, Lifts Price Target to $4.50 Amid Improving Execution and Growth Prospects

Analyst Andrew Sherman from TD Cowen maintained a Hold rating on Rimini Street and increased the price target to $4.50 from $4.00.

Andrew Sherman has given his Hold rating due to a combination of factors, including strong near‑term execution but still‑developing proof of a sustained growth inflection. He highlights that first‑quarter revenue exceeded expectations, remaining full‑year guidance was reaffirmed, and remaining performance obligations grew at a faster pace as customers increasingly sign larger, multi‑year agreements now that the Oracle litigation overhang has been removed.

Sherman also notes that valuation appears inexpensive on an enterprise value to forecast free cash flow basis, yet he expects the stock to trade in its current range until growth clearly accelerates and a consistent beat‑and‑raise pattern is established. While he is encouraged by recent big‑ticket wins, improving U.S. momentum, and has raised the price target to $4.50 on higher estimates and better execution, he believes the risk‑reward remains balanced at this stage, justifying a Hold rather than a more aggressive rating.