In a report released today, Mayank Tandon from Needham maintained a Buy rating on Alkami Technology (ALKT – Research Report), with a price target of $40.00.
Mayank Tandon has given his Buy rating due to a combination of factors that highlight Alkami Technology’s strong performance and promising future prospects. The company exceeded expectations in the first quarter, with a notable 27% year-over-year growth in subscription revenue and improved profit margins. Additionally, Alkami successfully added new clients and renewed existing ones, while also achieving significant progress in organic add-on sales and cross-selling initiatives.
These achievements have led to an optimistic outlook for the company, prompting an upward revision of its fiscal year 2025 guidance and a positive forecast for the second quarter. Tandon emphasizes Alkami’s mission-critical SaaS solutions, stable revenue streams, and improving margins as key reasons for the Buy rating, especially in the current uncertain market environment. Despite lowering the target price to $40 due to broader valuation adjustments in the financial SaaS sector, Tandon remains confident in Alkami’s ability to meet its financial targets for 2025 and 2026, making it a top pick for investors.
According to TipRanks, Tandon is an analyst with an average return of -5.2% and a 36.88% success rate. Tandon covers the Technology sector, focusing on stocks such as Exlservice Holdings, WNS, and Globant SA.