Lucid Capital Markets initiates Rimini Street stock with Buy rating

Investing.com - Lucid Capital Markets initiated coverage on Rimini Street (NASDAQ:RMNI) with a Buy rating and a $6.00 price target on Monday. The stock, which has surged over 120% in the past year despite a recent 10% pullback last week, currently trades at $4.28.

The enterprise software support provider has been operating with flat sales for the past two years following disruption from litigation with Oracle, according to Lucid Capital Markets.

Rimini Street is now operating without legal distractions and difficult comparisons as artificial intelligence begins to emerge as a potential tailwind for the business.

The research firm expects Rimini Street to return to positive revenue growth in 2026 and beyond, noting the company is currently profitable and generating cash.

Lucid Capital Markets considers the shares significantly undervalued at approximately 7x EV/EBITDA, given the potential for growth acceleration in upcoming quarters.

In other recent news, Rimini Street, Inc. has been active with several strategic developments. The company has been approved as a supplier on the United States General Services Administration’s Multiple Award Schedule, allowing government agencies to procure Rimini Street’s support and security services for Oracle, SAP, and VMware software at a reduced cost. This approval offers potential savings of up to 50% on vendor maintenance fees for these agencies. Additionally, Rimini Street announced a partnership with American Digital to deliver IT cost savings for North American clients, focusing on comprehensive enterprise software support solutions.

In another collaboration, Korean Broadcasting System (KBS) has partnered with Rimini Street to support its SAP ECC 6.0 system, enabling KBS to redirect resources toward artificial intelligence initiatives. This partnership is expected to cut KBS’s annual software maintenance fees by 50%. Furthermore, Suntory has expanded its relationship with Rimini Street to develop a new mobile application for its wellness division. Rimini Consult will build "Comado," a gamified, points-based app, leveraging Suntory’s existing Oracle systems. These recent developments highlight Rimini Street’s ongoing efforts to provide cost-effective software support solutions to a diverse range of clients.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.