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Investing.com - Oppenheimer raised its price target on Agilysys Inc (NASDAQ:AGYS) to $125.00 from $120.00 on Tuesday, while maintaining an Outperform rating on the hospitality software provider. The stock, which has gained over 46% in the past six months, currently trades at $113.94, with analyst targets ranging from $120 to $152.
The price target increase follows a meeting between Oppenheimer and Agilysys CFO Dave Wood, which reinforced the firm’s positive outlook on the company’s sales momentum and property management system (PMS) business trajectory. According to InvestingPro data, the company has demonstrated strong growth with revenue increasing 17.91% over the last twelve months to $288.79 million.
Oppenheimer highlighted several strengths in Agilysys’ business model, including new customer acquisitions, point-of-sale and property management system attach rates, platform architecture advantages, and partnership ecosystem benefits.
The research firm specifically noted the Marriott opportunity and the durability of Agilysys’ competitive position, describing it as "one of the more defensible SMiD-Cap software businesses in the AI transition" with a consumption model, vertical business focus, and natively-built AI embedded throughout its platform.
While Oppenheimer did not update its financial forecast, the firm expressed increased confidence that Agilysys can achieve consensus estimates for the fiscal second quarter and full-year 2026, positioning it as a potential relative outperformer in the software sector through year-end.
In other recent news, Agilysys Inc. reported its financial results for the first quarter of fiscal year 2026, revealing significant revenue growth. The company posted a revenue of $76.7 million, surpassing the expected $74.35 million, but it missed its earnings per share (EPS) forecast with a reported EPS of $0.33 against the anticipated $0.36. Despite this earnings miss, the revenue growth was seen as a positive sign by investors. Cantor Fitzgerald maintained its Overweight rating on Agilysys, citing strong performance in the subscription revenue segment. Oppenheimer raised its price target for Agilysys from $90 to $120, highlighting robust sales performance and record new customer acquisitions. Needham reiterated its Buy rating with a $130 price target, noting a 44.3% year-over-year increase in subscription revenue. These developments reflect positive market sentiment toward Agilysys’ strategic initiatives and financial performance.
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