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Investing.com -- JPMorgan has reaffirmed Alkami Technology (NASDAQ: ALKT) as Overweight and added the company to its Analyst Focus List as a “Growth Idea,” calling the stock “a strong buy” despite a recent pullback following quarterly results.
“Alkami shares closed down 8% on Friday after reporting results Thursday after the market closed. We are perplexed by the stock reaction,” analyst Ella Smith wrote in a note. “We think the shares underperformed due to a modest revenue miss, which we perceive to be a non-issue.”
According to JPMorgan, Alkami’s fundamentals remain strong, with the company “growing ARR organically by 20%” and completing “a record number of customers in the third quarter.”
The firm also pointed to Alkami’s “live user backlog of 1.7 million,” which is 30% higher than the six-quarter average and a “key leading indicator for forward organic ARR growth.”
Smith notes that the small revenue guidance cut, just 0.4% at the midpoint, stemmed from a “strategic decision to deploy resources to new logo implementations” and larger customer go-lives late in the quarter.
“This was a calculated move to maximize long-term customer success and future revenue streams,” JPMorgan wrote.
The bank expects Alkami’s “high-teens to low-20s organic ARR growth” to continue through 2026, with management targeting “$1 billion in revenue by the 2030 timeframe.”
“The market opportunity is still massive,” the analyst said, citing that “over 70% of the addressable market remains on legacy software.” JPMorgan added that Alkami is “better positioned with smaller institutions.”