TD Cowen analyst Derrick Wood maintained a Hold rating on Rimini Street yesterday and set a price target of $6.00.
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Derrick Wood has given his Hold rating due to a combination of factors influencing Rimini Street’s current financial standing and future outlook. The company is showing signs of improvement with an expected return to positive billings growth in the third quarter, projected at 2%, following a decline in the previous quarter. Revenue growth also shows potential for improvement, although it faces challenges in the fourth quarter due to tough comparisons, with a more significant acceleration anticipated in fiscal year 2026.
Despite some positive developments, such as the settlement of litigation with Oracle and new partnerships, Rimini Street’s decision to end its PeopleSoft support business has impacted its revenue. Additionally, the net new customer count has decreased, and although sales headcount has stabilized, it remains lower year-over-year. These mixed signals, combined with the suspension of guidance until the analyst day in December, contribute to the cautious Hold rating, as investors await more clarity on the company’s strategic direction.
In another report released on October 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $4.50 price target.
RMNI’s price has also changed moderately for the past six months – from $3.440 to $4.520, which is a 31.40% increase.