Alliance Global trims Rimini Street price target to $4.50, says selloff overdone

Alliance Global Partners analyst Brian Kinstlinger lowered the firm’s price target on Rimini Street (RMNI) to $4.50 from $7 and keeps a Buy rating on the shares after a court ruled in favor of Oracle’s (ORCL) infringement claim related to the PeopleSoft support and maintenance services, meaning Rimini therefore can no longer use its automated tools. While the firm expects this will result in increased hiring for manual processing and a slightly lower gross margin, the firm expects “limited, if any,” customer attrition, and adds that it expects there will continue to be new customer wins. With Rimini shares down 48% in the week since the court ruling, Alliance argues this is “overdone,” noting that the stock now trades at an implied valuation of “just” 3.3-times its revised 2024 adjusted EBITDA estimate.