Analyst Mayank Tandon of Needham reiterated a Buy rating on Agilysys, boosting the price target to $140.00.
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Mayank Tandon has given his Buy rating due to a combination of factors that highlight Agilysys’s strong financial performance and growth potential. The company has exceeded expectations in its second quarter of fiscal year 2026, with notable increases in both revenue and EBITDA driven by a 33% year-over-year rise in subscription revenue and significant growth in professional services revenue. The organic subscription revenue growth in the POS and PMS segments was particularly impressive, with increases of 18% and 55% year-over-year, respectively.
Moreover, Agilysys’s ability to secure 18 new multi-product subscription agreements during the quarter underscores its robust sales momentum across various sub-verticals, including Gaming, HRC, and FSM. This broad-based sales strength has led management to raise their guidance for fiscal year 2026 revenue and EBITDA. Tandon sees potential for the stock to be re-rated as the company continues to convert its record backlog, accelerate subscription growth, and expand EBITDA margins, justifying the Buy rating and an increased price target of $140.