JPMorgan initiates coverage of Alkami Technology with an "Overweight" rating and $40 price target.

From Yahoo Finance: 2025-06-25 13:00:00

JPMorgan analyst Ella Smith initiates coverage of Alkami Technology (ALKT) stock with an “Overweight” rating and $40 price objective, highlighting gross margin expansion through hosting cost improvements and operating leverage. Client renewals and cross-selling products are key drivers for long-term growth in the digital banking space, according to JPMorgan.

Alkami Technology (ALKT) reported 20.5 million users on its platform in Q1 2025, up by 2.3 million from the previous year. The acquisition of MANTL is expected to drive revenue growth and gross margin expansion, with a positive impact on adjusted EBITDA in 2026, aligning with the company’s long-term financial targets.

Alkami Technology (ALKT) offers cloud-based digital banking solutions. While ALKT shows growth potential, some AI stocks may offer higher returns with limited downside risk. Investors seeking AI stocks with significant upside potential can explore alternatives beyond ALKT in the market.

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Read more: JPMorgan Initiates Coverage of Alkami Technology (ALKT) Stock, Gives Overweight