jpmorgan thinks alkami is poised for longterm growth despite ongoing concerns in the banking industry analyst alexei gogolev initiated coverage on alkami with an overweight rating and a 15 price target which implies shares gaining 214 from mondays close alkami provides software to regional banks and credit unions to facilitate online banking jpmorgan said said alkamis potential addressable market is at 11 billion in the us as the modernization of digital banking for credit unions and regional banks continues alkami runs a 100 cloudbased multitenant and single codehosted platform which ensures substantial advantages vs peers with alkamis 96 subscription in revenues 97 gross retention rate and 115 net dollar retention the company has a high level of visibility into topline growth projected 3y cagr of 25 gogolev wrote in a tuesday note with 024b in average recurring revenue alkami is a relatively small player but the company appears to have been gaining share and displacing legacy banking solution providers he continued to be sure gogolev acknowledged that the uncertainty surrounding the us banking sector has put downward pressure on valuation multiples on stocks in the sector we flag that alkamis current customer base and main target audience are smaller regional banks that may see fewer outflows of deposits given higher share of those being fdic insured the analyst said while its difficult to dislodge the already embedded market view around the headwinds that alkami may face we do not think we are likely to see a material hit to the number of digital accounts serviced by alkamis clients and hence would expect the companys longterm growth and profitability targets to remain intact shares have popped more than 15 over the last 12 months however theyre down year to date —cnbcs michael bloom contributed to this report