Agilysys: Positioned for Growth with Strong Long-term Prospects Despite Short-term Challenges

Needham analyst Mayank Tandon reiterated a Buy rating on Agilysys (AGYS – Research Report) today and set a price target of $100.00.

Mayank Tandon has given his Buy rating due to a combination of factors that indicate a positive outlook for Agilysys. The company is poised to overcome current challenges in its point-of-sale sales and services revenue, which are seen as temporary. Tandon anticipates that growth will rebound to its usual trend within the next two to three quarters.
Furthermore, Agilysys is well-positioned in a substantial $16 billion total addressable market, with leading products in property management systems and point-of-sale solutions for the hospitality sector. The company has also strengthened its sales leadership team, which is expected to support a sustained organic subscription revenue growth rate of over 25% annually, alongside expanding EBITDA margins. Despite short-term adjustments to estimates, the long-term prospects remain strong, justifying the Buy rating.

According to TipRanks, Tandon is an analyst with an average return of -2.6% and a 38.12% success rate. Tandon covers the Technology sector, focusing on stocks such as Agilysys, Euronet Worldwide, and Par Technology.