William Blair analyst Christopher Kennedy has maintained their bullish stance on ALKT stock, giving a Buy rating today.
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Christopher Kennedy has given his Buy rating due to a combination of factors including Alkami Technology’s strong fundamentals and the recent pullback in its stock price, which he views as a buying opportunity. Despite the broader underperformance in the banktech sector, Alkami’s shares are trading at a valuation that is attractive compared to its peers, suggesting potential for appreciation.
Furthermore, Alkami’s recent performance shows encouraging signs, such as a 31% increase in September-quarter revenue and a significant beat in adjusted EBITDA. The company has successfully implemented a record number of digital banking clients, which, despite moderating add-on sales, indicates strong demand for its services. Additionally, the appointment of a new CFO, Cassandra Hudson, is expected to solidify financial targets and address investor concerns, enhancing long-term growth prospects.
According to TipRanks, Kennedy is an analyst with an average return of -7.2% and a 31.88% success rate. Kennedy covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Remitly Global, and Fidelity National Info.
In another report released today, Needham also reiterated a Buy rating on the stock with a $32.00 price target.