Agilysys (AGYS) shares were down about 20% in recent Wednesday trading after the company lowered its fiscal 2025 revenue guidance following its Q3 results.
The company now expects fiscal 2025 revenue of about $273 million, down from $280 million to $285 million previously. Analysts projected $281.9 million in a FactSet poll.
After the results, Oppenheimer cut its price target for the stock to $135 from $150 while keeping its outperform rating.
Oppenheimer said the results and guidance missed Street expectations, driven by a "revenue shortfall from elongating cycles in the POS business and not enough Services resources."
"AGYS shares...are possibly dead money near term, with management credibility taking a hit from another guide down, until the POS and Services business issues prove transitory," analysts Brian Schwartz and Camden Levy said in a note.
Still, they stayed with the stock.
"We recommend buying the current share weakness since the
high-margin subscription revenue growth looks durable and could top 50% in 2H:FY26 as Marriott goes live," they said.
Price: 100.51, Change: -25.39, Percent Change: -20.17
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