Alkami price target raised to $32 from $30 at Needham

Needham raised the firm’s price target on Alkami to $32 from $30 and keeps a Buy rating on the shares. The company’s better than expected Q1 results were highlighted by 27% Y/Y subscription revenue growth, 360 bps Y/Y gross margin expansion, and even stronger EBITDA margin expansion, the analyst tells investors in a research note. With shares trading at a “reasonable” enterprise value to expected revenue multiple of 5.5-times, the risk-reward on the stock is “attractive”, the firm adds.