10 Best Mid-Cap Growth Stocks to Buy According to Analysts

8. Alkami Technology Inc. (NASDAQ:ALKT)

Upside Potential: 33%

Number of hedge funds: 18

Alkami Technology Inc. (NASDAQ:ALKT) is a provider of cloud-based digital banking solutions. Its unique Alkami Digital Banking Platform supports multiple tenants simultaneously. This platform enables financial institutions to onboard and engage new users, accelerate revenues, and significantly improve operational efficiency. It offers a comprehensive set of software products across various functions, including account opening, marketing, data insights, money movement, customer service, financial wellness, and security.

Alkami Technology Inc. (NASDAQ:ALKT) continued to show strong topline growth, as evidenced by its recently reported Q3 2024 results. In October 2024, the company announced a robust 27% year-over-year revenue increase for the third quarter, reaching $85.9 million. Profitability also improved, with an adjusted gross margin of 62.8% (up from 58.7% in Q3 2023) and an adjusted EBITDA of $8.3 million, a significant improvement over the nearly $1 million reported in Q3 2023. The company added 2.6 million new users, bringing the total live registered user base to 19.5 million as of the end of Q3 2024. Alkami Technology Inc. (NASDAQ:ALKT) signed nine new digital banking clients, including six credit unions and three banks, and renewed 14 clients, with several extending their contracts to 2031. These results are highly positive for the company’s long-term growth as it continues to gain market share and experience profitable growth. An analyst at JP Morgan recently raised his price target on Alkami Technology Inc. (NASDAQ:ALKT) to $45 from $42, reiterating his Overweight rating.