In a report released today, Mayank Tandon from Needham reiterated a Buy rating on Agilysys, with a price target of $130.00.
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Mayank Tandon has given his Buy rating due to a combination of factors that indicate a positive outlook for Agilysys. The company has experienced consecutive strong sales quarters, leading to a record backlog, which suggests a promising acceleration in subscription growth. This growth is supported by strategic investments in the sales force and leadership changes that have resulted in new customer acquisitions and successful cross-sales.
Furthermore, Agilysys is well-positioned in the hospitality sector with its market-leading software solutions and a significant total addressable market of $16 billion. The anticipated rollout of the Marriott Property Management System in FY27 is expected to further enhance growth prospects. As the backlog converts and subscription growth continues, there is potential for the company’s shares to be re-rated, with scale benefits likely to improve EBITDA margins, reinforcing the Buy rating.
According to TipRanks, Tandon is an analyst with an average return of -2.9% and a 39.96% success rate. Tandon covers the Technology sector, focusing on stocks such as Agilysys, Exlservice Holdings, and Genpact.
In another report released on July 24, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $130.00 price target.