RMNI: Expanded Partnerships And Buybacks Will Support Long Term Upside Potential

Analysts have reduced their price target on Rimini Street from approximately 6.00 dollars to 5.00 dollars, citing expectations of higher discount rates, more modest long term profit margins, and a richer future earnings multiple despite stronger projected revenue growth.

What's in the News

• Rimini Street expanded its partnership with Tidewater, underscoring demand for its third party enterprise software support despite ongoing Oracle related litigation and macroeconomic risks (Client Announcements).
• The company launched Rimini Agentic UX, an AI driven user experience layer designed to automate ERP workflows, cut labor costs and avoid expensive ERP upgrades or migrations (Product Related Announcements).
• Silicon Labs selected Rimini Street as a strategic partner to maximize the value of its SAP ECC 6.0 system, reinforcing Rimini Street's positioning in mission critical ERP environments (Client Announcements).
• Korean Broadcasting System partnered with Rimini Street for SAP ECC 6.0 support to help fund and accelerate its AI strategy, leveraging more than two decades of core operational data (Client Announcements).
• Rimini Street continued returning capital to shareholders, completing repurchases of roughly 3.28 percent of its shares for 13.33 million dollars and extending its buyback plan to June 1, 2029 (Buyback Tranche Update, Buyback Change in Plan Terms).

Valuation Changes

• The fair value estimate has been reduced from approximately 6.00 dollars to 5.00 dollars, reflecting a modest downward revision in intrinsic valuation.
• The discount rate has risen slightly from about 8.5 percent to roughly 9.1 percent, indicating a higher required return and risk premium applied to future cash flows.
• Revenue growth assumptions have increased significantly from roughly 0.9 percent to about 2.7 percent annually, signaling higher expectations for top line expansion.
• The net profit margin has been reduced sharply from roughly 16.0 percent to about 5.6 percent, incorporating more conservative long term profitability assumptions.
• The future P/E multiple has been raised substantially from about 10.4 times to approximately 23.3 times, implying a richer valuation on projected earnings despite tighter margin expectations.