Craig-Hallum positive on Rimini after Oracle litigation agreement

Craig-Hallum keeps a Buy rating on Rimini Street (RMNI) with a $7 price target after the company disclosed standstill agreement with Oracle (ORCL), and pending execution on the exit of PeopleSoft by Rimini, an agreement to end all litigation. The suit has likely cost $350M combined for both sides over the past decade-plus, the analyst tells investors in a research note. Hallum believes the end of litigation will likely save Rimini $7M in external legal cost per year and leaves room for material reductions in its in-house legal team. The firm says this will be the first time in over a decade the company will be litigation-free and can focus on its business. Rimini is the dominant provider in third party support as no one wanted to follow suit and get in legal battles with Oracle, giving it a large total addressable market, contends Craig-Hallum. It thinks the company can resume sales growth despite the pending exit of the 7% of its revenue from PeopleSoft.