William Blair analyst Christopher Kennedy has maintained their bullish stance on ALKT stock, giving a Buy rating today.
Christopher Kennedy has given his Buy rating due to a combination of factors that highlight Alkami Technology’s strategic growth potential and current market positioning. Despite a recent dip in share prices, Kennedy views this as a buying opportunity, particularly given Alkami’s solid core business and the strategic acquisition of MANTL. The acquisition is set to enhance Alkami’s digital account opening capabilities, aligning well with its existing digital banking and data analytics services.
Furthermore, MANTL is expected to contribute significantly to Alkami’s growth, with a projected 30% increase in annual recurring revenue by 2025. The acquisition also strengthens Alkami’s presence in the banking sector, as a majority of MANTL’s clients are banks. While there may be short-term pressure on EBITDA margins, the long-term revenue synergies and Alkami’s proven ability to cross-sell to new clients suggest a promising outlook. Additionally, Alkami’s extensive data platform offers substantial opportunities for growth, leveraging access to millions of deposit accounts and billions of transactions to provide targeted offerings to banks and their customers.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $46.00 price target.