Analyst Derrick Wood of TD Cowen maintained a Hold rating on Rimini Street (RMNI – Research Report), boosting the price target to $4.00.
Derrick Wood’s rating is based on a combination of factors, including a revision of Rimini Street’s net debt level. The adjustment from $54 million to -$4 million indicates a more favorable financial position than previously assessed. Consequently, the price target has been increased from $3.50 to $4.00, reflecting a valuation of approximately 8 times the enterprise value to the calendar year 2025 EBIT. Despite the improved financial metrics, the decision to maintain a Hold rating suggests that while the company’s financial outlook has improved, there may still be uncertainties or market conditions that warrant caution. This balanced perspective indicates that while there is potential for growth, it may not yet be compelling enough to warrant a more aggressive Buy rating.