Wang & Lee Group board approves 250-to-1 reverse share split
On Wednesday, KeyBanc Capital Markets maintained its positive stance on Alkami Technology Inc (NASDAQ: ALKT), reiterating an Overweight rating and a $40.00 price target. Currently trading at $29.24, the stock sits below analyst targets ranging from $28 to $46, with consensus suggesting a 37% potential upside. This affirmation follows the results of KeyBanc’s first half of 2025 Bank Software (ETR:SOWGn) Customer Survey, which highlighted Alkami’s strong positioning in the digital banking software market. According to InvestingPro data, the company has demonstrated robust revenue growth of 26.55% over the last twelve months.
The survey indicated that Alkami was a top consideration for respondents intending to issue a Request for Proposal (RFP) for a new digital banking software vendor. With a market capitalization of $3.01 billion and projected sales growth of 33% for fiscal year 2025, Alkami excelled particularly in retail digital banking, outperforming competitors and securing the highest ranking in that category. Additionally, the company showed competitive strength in the commercial sector, standing out against other vendors such as Q2 Holdings Inc (NYSE: NYSE:QTWO) and Fidelity National Information Services (NASDAQ:III) (NYSE: FIS).
KeyBanc’s analyst noted the significance of Alkami receiving high levels of consideration from bank respondents, as opposed to its core credit union customer base. This trend suggests a growing momentum in bank bookings, which is expected to contribute to the company’s growth in the coming years. The alignment of modernization priorities among survey respondents with Alkami’s product offerings also supports this optimistic outlook. The recent acquisitions of MANTL, which addresses account opening and client onboarding, and Segmint, which offers data insights, align with the top-cited priorities for 2025 and 2026.
The demand for additional products from digital banking vendors, both in the retail and commercial spaces, was also seen as a positive indicator for Alkami’s potential to increase its cross-selling activities in 2025 and 2026. KeyBanc’s analysis suggests that Alkami is well-positioned to capitalize on these market opportunities, reinforcing the firm’s confidence in the company’s future performance.
In other recent news, Alkami Technology Inc. reported a notable surge in revenue for the first quarter of 2025, reaching $97.8 million and surpassing analyst forecasts of $94.25 million. This marks a 28.5% increase year-over-year. However, the company’s earnings per share (EPS) fell short, reporting -$0.08 compared to the expected $0.09. Alkami also completed the acquisition of Mantle for $393 million, which is expected to be EBITDA accretive by 2026. The acquisition is anticipated to enhance Alkami’s digital banking services, particularly in account opening and onboarding, which are key growth areas. Analysts from firms like William Blair have noted the strong initial cross-selling potential of Mantle’s offerings within Alkami’s existing customer base. Looking ahead, Alkami projects Q2 2025 revenue between $109 million and $110.5 million, reflecting a 33-35% increase. The company also anticipates a full-year 2025 revenue in the range of $443-$447 million.
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