Summary
Citizens has reiterated a Market Outperform rating and maintained a $40.00 price target on Alkami Technology Inc (NASDAQ: ALKT), a figure that represents about a 78% premium to the company's current market price of $22.41. The broker emphasized Alkami's foothold in mission-critical software for financial institutions and the complementary capabilities added through the MANTL acquisition, while noting the company’s recent revenue momentum and liquidity position.
Analyst view and valuation
Citizens backed its stance with several data points. Analyst targets for Alkami, according to InvestingPro data, span from $25 to $40 with a consensus recommendation of 1.7, which translates to a Buy. The firm pointed to Alkami’s cloud-native deposit account opening and online banking platforms as strategic advantages that helped drive 30.7% revenue growth over the trailing twelve months. Citizens also highlighted a 2026 EV/revenue multiple of 4.6x and projected cash generation as supporting the positive view.
Citizens referenced the MANTL acquisition as a material enhancement to Alkami’s onboarding and account-opening functionality. Management and the acquisition together underpin the firm’s projection that Alkami will grow about 33% this year, which the note clarifies is roughly 23% growth when excluding MANTL’s contribution.
Market opportunity and customer penetration
Citizens emphasized Alkami’s early-stage penetration into a broad addressable market. The firm estimates the U.S. digital banking population outside megabanks exceeds 250 million users, of which roughly 21 million are current Alkami users and about 210 million remain on legacy systems. That dynamic, combined with Alkami’s market capitalization of $2.35 billion, is cited as evidence of runway for additional customer conversions.
Balance sheet and leadership
The company’s liquidity profile was singled out as a strength. Alkami’s current ratio stands at 2.17, indicating liquid assets exceed short-term obligations. Citizens also expressed confidence in CEO Alex Shootman’s leadership and in newly appointed CFO Cassandra Hudson’s background, and noted that Alkami could attract interest from private equity or strategic acquirers such as Fiserv.
Profitability outlook and near-term calendar
While Alkami was not profitable over the prior twelve months, InvestingPro analysis cited by Citizens points to an expected return to profitability this year, with earnings per share forecast at $0.54 for fiscal 2025. The firm also flagged the company’s next scheduled earnings release for February 19, which it noted is 21 days away from the time of the note.
Recent mixed operational and market developments
The report summarized several recent developments. Alkami reported mixed third-quarter 2025 results in which total revenue missed expectations, but adjusted EBITDA profitability exceeded forecasts, according to Goldman Sachs. In response, Goldman Sachs trimmed its price target from $29.00 to $26.00 while keeping a Neutral rating. Separately, activist investor Jana Partners urged that Alkami explore a potential sale, arguing the company is undervalued following a substantial share-price decline.
The company has continued product and partnership activity: it launched a One-Click SDK Manager to simplify development and deployment on its Digital Banking Platform, announced a strategic partnership with Spiral to add savings and charitable giving tools, and disclosed that more than 500 financial institutions are now using its Positive Pay Solutions for fraud prevention.
What investors and market participants should note
Citizens’ reiteration of Market Outperform and its $40.00 target reflect confidence in Alkami’s cloud-native product positioning, recent inorganic growth through MANTL, projected revenue expansion and liquidity metrics. At the same time, mixed quarterly revenue performance, a lowered peer analyst target and ongoing shareholder activism are part of the current risk and sentiment picture. Investors will likely watch the upcoming earnings release and subsequent analyst revisions closely.