Maxim Group analyst Matthew Galinko maintained a Buy rating on American Software (AMSWA – Research Report) yesterday and set a price target of $16.00.
Matthew Galinko, an analyst at Maxim Group, decided to give American Software a Buy rating due to a variety of factors.
Firstly, American Software has been actively transitioning to cloud-native software solutions, which typically yield higher-margin recurring revenues. This strategic shift has created substantial growth opportunities for the company. Despite some short-term setbacks, such as reduced FY24 guidance and lower than expected Q2 revenue and EBITDA, Galinko believes that the company’s long-term prospects remain strong.
Secondly, Galinko recognizes the company’s potential to capture a large market share through new client acquisitions and transitioning existing clients to their cloud services. This potential growth could be further propelled by the company’s new cloud AI asset. Furthermore, the company’s strong balance sheet – boasting $83.9M, a self-sustaining business model, and a debt-free status – provides it with financial flexibility. Given these factors, combined with the fair valuation of 2.6x FY24 estimated revenue, Galinko maintains a Buy rating for American Software.
According to TipRanks, Galinko is an analyst with an average return of -19.2% and a 27.27% success rate. Galinko covers the Technology sector, focusing on stocks such as American Software, WISeKey International Holding, and Adeia.
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American Software (AMSWA) Company Description:
American Software, Inc. engages in the development and marketing of supply chain management and enterprise software solutions. It operates through the following segments: Supply Chain Management (SCM), Information Technology (IT) Consulting, and Other. The SCM segment offers supply chain optimization and retail planning solutions. The IT Consulting segment provides software enhancements, documentation, updates, customer education, consulting, systems integration services, maintenance, and support services. The Other segment involves the purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions. The company was founded by James C. Edenfield in 1970 and is headquartered in Atlanta, GA.
Read More on AMSWA:
- American Software raises FY24 revenue view to $100M-$104M from $85M-$88M
- American Software reports Q2 adjusted EPS 8c, consensus 9c
- American Software divests Logility subsidiary to FOG Software
- AMSWA Upcoming Earnings Report: What to Expect?
- American Software adopts 10b5-1 trading plan for share repurchase program
