Agilysys Receives Buy Rating Amid Strong Performance and Growth Potential, Target Price Raised to $105

In a report released today, Mayank Tandon from Needham reiterated a Buy rating on Agilysys (AGYS – Research Report), with a price target of $105.00.

Mayank Tandon has given his Buy rating due to a combination of factors that highlight Agilysys’s strong performance and potential for growth. The company’s fourth-quarter results for FY25 were robust, primarily driven by significant growth in subscription services and professional services revenue. Despite a conservative revenue guidance for FY26, which does not account for potential contributions from the Marriott PMS roll-out, the forecast still anticipates healthy organic subscription growth and continued expansion of EBITDA margins.
Additionally, the company’s backlog has increased by 26% year-over-year, and it has secured 16 new logo wins in the fourth quarter. Notably, Agilysys has also announced a deal with Boyd Gaming to implement its POS systems across 28 properties, suggesting a positive outlook beyond the initial guidance. These factors collectively support the decision to maintain a Buy rating and raise the target price to $105.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AGYS in relation to earlier this year.