In a report released today, Mayank Tandon from Needham reiterated a Buy rating on Agilysys (AGYS – Research Report), with a price target of $100.00.
Mayank Tandon has given his Buy rating due to a combination of factors surrounding Agilysys’s financial performance and future prospects. Tandon acknowledges that the company’s fourth-quarter fiscal year 2024 earnings surpassed expectations, with significant contributions coming from both recurring and services revenue. Furthermore, the company demonstrated operational efficiency, resulting in a higher-than-projected EBITDA margin. This positive financial outcome, alongside the sales vigor marked by a substantial increase in subscription revenue and the acquisition of new clients, provided a solid foundation for the Buy rating.
Tandon’s optimism is also fueled by Agilysys’s forward-looking statements, which forecast robust subscription growth. Although the EBITDA estimates were slightly conservative, Tandon attributes this to the company’s strategic investments in research and development, sales and marketing, and costs associated with implementing recent deals. The continuous improvement in profit margins and the strong trend in subscription growth underpin Tandon’s reaffirmation of the Buy rating and his confidence in a $100 price target for Agilysys’s stock.
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Agilysys (AGYS) Company Description:
Agilysys, Inc. operates as a technology company. It offers innovative software for point-of-sale, payment gateway, reservation and table management, guest offers management, property management, inventory and procurement, analytics, document management, and mobile and wireless solutions and services to the hospitality industry. The firm also serves the gaming for both corporate and tribal; hotels resort and cruise; foodservice management; and restaurants, universities, stadia, and healthcare sectors. The company was founded in 1963 and is headquartered in Alpharetta, GA.
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