Agilysys (AGYS) is an attractive long-term investment as the market could be under-appreciating a solid growth opportunity in the hospitality space, Oppenheimer said in a note Thursday.

For fiscal Q4, the brokerage estimates total revenue of $81.6 million and adjusted EBITDA of $17.5 million. Oppenheimer said the fiscal Q4 beat may be impacted by softer travel trends and cyclical pressures from the partial government shutdown and the Middle East conflict.

Agilysys has an agreement with Marriott (MAR) to provide its cloud-native property management system software. While the deal suggests fiscal 2027 consensus revenue estimates could move higher, the guidance is underwhelming considering the size of the opportunity, the brokerage said.

In Oppenheimer's base case, it expects $22 million in fiscal 2027 Marriott revenue, while reducing its fiscal 2030 Marriott forecast on lower attach rate assumptions.

If Marriott achieves its revenue modernization goal, it could push other large hotel groups to standardize on Agilysys, the brokerage added.

Oppenheimer maintained an outperform rating on Agilysys with a $90 price target.

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