William Blair analyst Stephen Sheldon has maintained their bullish stance on AGYS stock, giving a Buy rating today.
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Stephen Sheldon has given his Buy rating due to a combination of factors that highlight Agilysys’s strong financial performance and promising growth trajectory. The company reported robust fiscal fourth-quarter results, with revenue surpassing both Sheldon’s and consensus estimates, driven by significant growth in subscription and professional services revenue. Despite a conservative fiscal 2026 guidance, Sheldon anticipates a potential for exceeding expectations, particularly with the ongoing rollout with Marriott, which has not yet been factored into the projections.
Furthermore, Agilysys’s adjusted EBITDA and EPS also outperformed estimates, indicating strong profitability. The management’s guidance for fiscal 2026, although slightly below consensus in terms of revenue, shows confidence in achieving higher profit margins. This conservative approach, coupled with the potential upside from the Marriott implementation and a stable macroeconomic outlook, supports Sheldon’s optimism and Buy rating for Agilysys’s stock.
Sheldon covers the Technology sector, focusing on stocks such as Olo, Udemy Inc, and Agilysys. According to TipRanks, Sheldon has an average return of 3.1% and a 54.55% success rate on recommended stocks.
In another report released today, Needham also reiterated a Buy rating on the stock with a $105.00 price target.