Needham & Company LLC Raises Agilysys (NASDAQ:AGYS) Price Target to $130.00

Key Points

• Needham raised Agilysys’s price target to $130 from $120 and maintained a “Buy” rating, implying approximately 25.9% upside from the previous close.
• Analyst sentiment remains favorable, with Agilysys carrying a “Moderate Buy” consensus rating and an average price target of $120. The company recently exceeded quarterly earnings and revenue expectations, with revenue up 14.3% year over year.
• Agilysys shares opened at $103.24, while the company’s high valuation—about 75.9 times earnings—remains a risk if growth or future results disappoint.

Agilysys (NASDAQ:AGYS - Get Free Report) had its price objective increased by stock analysts at Needham & Company LLC from $120.00 to $130.00 in a research note issued on Tuesday, MarketBeat.com reports. The firm presently has a "buy" rating on the software maker's stock. Needham & Company LLC's price objective points to a potential upside of 25.92% from the stock's previous close.

Other analysts have also recently issued reports about the stock. Cantor Fitzgerald restated an "overweight" rating on shares of Agilysys in a report on Wednesday, June 17th. Oppenheimer increased their target price on shares of Agilysys from $90.00 to $100.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. UBS Group set a $110.00 target price on shares of Agilysys in a research note on Wednesday, June 3rd. Piper Sandler initiated coverage on shares of Agilysys in a report on Tuesday, June 2nd. They set an "overweight" rating and a $110.00 price target on the stock. Finally, Zacks Research raised shares of Agilysys from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $120.00.

Agilysys Price Performance

Shares of AGYS opened at $103.24 on Tuesday. The company has a 50-day moving average of $95.10 and a two-hundred day moving average of $84.93. The stock has a market cap of $2.91 billion, a price-to-earnings ratio of 75.91 and a beta of 0.37. Agilysys has a one year low of $61.50 and a one year high of $145.25.

Agilysys (NASDAQ:AGYS - Get Free Report) last announced its earnings results on Monday, July 27th. The software maker reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.09. Agilysys had a net margin of 12.15% and a return on equity of 11.07%. The company had revenue of $87.68 million for the quarter, compared to the consensus estimate of $85.97 million. During the same period in the previous year, the business earned $0.33 EPS. The company's revenue was up 14.3% on a year-over-year basis. Analysts anticipate that Agilysys will post 1.79 earnings per share for the current year.

Hedge Funds Weigh In On Agilysys

Institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC raised its stake in shares of Agilysys by 31.1% in the 4th quarter. GAMMA Investing LLC now owns 552 shares of the software maker's stock valued at $66,000 after acquiring an additional 131 shares in the last quarter. ProShare Advisors LLC boosted its position in Agilysys by 3.1% during the fourth quarter. ProShare Advisors LLC now owns 5,023 shares of the software maker's stock worth $597,000 after purchasing an additional 153 shares during the period. State of Alaska Department of Revenue boosted its position in Agilysys by 1.1% during the fourth quarter. State of Alaska Department of Revenue now owns 14,326 shares of the software maker's stock worth $1,701,000 after purchasing an additional 156 shares during the period. Advisors Asset Management Inc. grew its holdings in Agilysys by 30.1% during the first quarter. Advisors Asset Management Inc. now owns 688 shares of the software maker's stock valued at $50,000 after purchasing an additional 159 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC grew its holdings in Agilysys by 33.7% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 639 shares of the software maker's stock valued at $81,000 after purchasing an additional 161 shares during the last quarter. 88.00% of the stock is currently owned by institutional investors.

Trending Headlines about Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Agilysys reported adjusted earnings of $0.49 per share versus the $0.40 consensus estimate, while revenue reached a record $87.7 million, above expectations of $85.97 million. Revenue increased 14.3% year over year, and earnings rose from $0.33 per share in the prior-year quarter. Agilysys Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and financial strength improved. Gross profit increased to approximately $55.7 million and operating profit more than doubled to $9.7 million. The company ended the quarter with $123.7 million in cash, while capital spending remained modest at $0.5 million. Agilysys Announces Record Fiscal 2027 First-Quarter Revenue
• Positive Sentiment: Full-year revenue guidance was raised or set above expectations. Agilysys projected fiscal 2027 revenue of $368 million to $373 million, slightly above the $367.7 million consensus estimate. This suggests management remains confident in demand for its hospitality software and recurring-revenue business. Agilysys Earns Buy Rating on Strong Execution and Lifted Guidance
• Positive Sentiment: Analyst sentiment remains supportive. William Blair analyst Stephen Sheldon maintained a Buy rating, citing strong execution, improved guidance and potential growth upside that may not yet be reflected in the valuation.
• Neutral Sentiment: Institutional positioning was mixed, with 121 investors adding shares and 129 reducing holdings in the latest reported periods. Reported insider activity was predominantly purchases, but the data comes from third-party sources and may not reflect current trading.
• Negative Sentiment: Valuation remains a risk. AGYS trades at a high P/E ratio of roughly 75.9, leaving the stock sensitive to any slowdown in growth or future earnings disappointments. The reported analyst price-target median of $110 also implies only limited upside from recent levels.

About Agilysys

Agilysys, Inc is a publicly traded technology company NASDAQ: AGYS that specializes in providing software and services to the hospitality industry. The company's solutions span property management, point-of-sale, inventory and procurement, workforce management, analytics and mobile guest engagement. These offerings are designed to streamline hotel and resort operations, enhance guest experiences and improve financial performance for clients across the lodging, gaming, cruise, senior living and higher-education markets.

Agilysys delivers its portfolio through both cloud-based and on-premises deployments, enabling hoteliers and hospitality operators to select the infrastructure model that best aligns with their operational requirements and IT strategies.

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