Agilysys Inc (AGYS) PT Raised to $125 at Craig-Hallum

Craig-Hallum analyst George Sutton raised the price target on Agilysys Inc (NASDAQ: AGYS) to $125.00 (from $105.00) while maintaining a Buy rating.

The analyst commented: "We are raising our price target to $125. While the stock is “expensive” on nearterm expectations, we believe the quality of the business, competitive advantage, stickiness of its offerings, favorable competitive dynamics (competing against slow moving incumbents), strong balance sheet, and significant whitespace (~$140M of ARR vs. $4.8B combined market opportunity) justifies a premium valuation. We also believe our growth and margin expectations are conservatively biased and believe heightened product development costs and one-time investments to ramp the Marriott contract obfuscate the true earnings power of the business. Our price target reflects a ~14x Gross Profit multiple on our FY26 estimate of $242M. Hospitality/POS vertical software comps on average trade at 7x CY25 gross profit, while vertical software comps trade at 10x GP."

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