Rimini Street upgraded to Buy from Neutral at Alliance Global Partners

Alliance Global Partners upgraded Rimini Street (RMNI) to Buy from Neutral with a price target of $6.50, up from $2.25, after the company posted better-than-expected Q4 results. A favorable ruling in December vacating a prior court ruling should lead to the return of just over $58M from Oracle (ORCL) and as a result management is reassessing its prior strategy which was to wind down its PeopleSoft business, which generated about 7.7% of 2024 revenue, the analyst tells investors. Management plans to stop additional cost-cutting measures and begin to invest in growth and the firm believes this change in strategy is the result of solid new logo wins, a recovering pipeline, improving sales execution and likely not winding down its entire PeopleSoft business.