Alkami added to Conviction Buy, named 2024 Top Pick at Needham

Needham raised the firm’s price target on Alkami (ALKT) to $30 from $24 and keeps a Buy rating on the shares. The analyst also added the shares to the firm’s Conviction List as a top pick for 2024, replacing WNS Holdings (WNS). Alkami’s sound execution and strong results in the face of continued economic uncertainty and last spring’s regional banking crisis have been impressive, the analyst tells investors in a research note. The firm adds that the company’s strong and consistent results reflect sustained market share gains, strong pace of new logo signings, and successful cross-selling efforts. Needham further believes that thecompany is poised to drive significant margin expansion over the next 3 years as part of management’s goal of achieving EBITDA margins of 20% by FY26.