Robert W. Baird & Co. Incorporated on Agilysys
Thesis
Baird initiated a position in Agilysys while increasing exposure to software. The company provides mission-critical cloud software to hotels, resorts, casinos, cruise lines, and other hospitality operators. Baird views the business as high quality because of its durable recurring revenue, high switching costs, and significant margin expansion potential. Its integrated cloud-native platform allows customers to consolidate vendors across multiple operational workflows, while AI offers opportunities to automate workflows and improve guest experiences.
“a high-quality business with durable recurring revenue, high switching costs, and significant margin expansion potential”