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

Alkami Technology, Inc. (NASDAQ:ALKT) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, JPMorgan analyst Ella Smith began coverage of the company’s stock with an “Overweight” rating and a price objective of $40, reducing it from $45. The firm highlighted the company’s gross margin expansion, which was achieved via improvements in hosting costs, platform investments, as well as operating leverage throughout post-sales operations.

A close up of a financial institution’s server displaying multiple banking solutions.

JPMorgan believes that client renewals happen to be an important lever for fueling long-term gross margin targets. Also, upselling products into Alkami Technology, Inc.’s existing customer base involves less implementation work, leading to elevated gross margins and underscoring the importance of Alkami Technology, Inc.’s cross-sell go-to-market strategy, added the firm. Overall, JPMorgan believes that the digital banking space remains an attractive investment arena.

Alkami Technology, Inc. exited Q1 2025 with 20.5 million users on the Alkami platform, an increase of 2.3 million as compared to the year-ago quarter. The company closed its acquisition of MANTL, and anticipates it to be accretive to Alkami Technology, Inc.’s overall revenue growth and gross margin expansion. Furthermore, the company believes that the impact of the acquisition will be accretive to adjusted EBITDA in 2026, enabling Alkami Technology, Inc. to meet or surpass long-term financial targets.

Alkami Technology, Inc. provides cloud-based digital banking solutions.

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