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Matthew Galinko has given his Buy rating due to a combination of factors. Despite a slight year-over-year decline in revenue and a miss on revenue estimates for F2Q25, the company's adjusted EBITDA surpassed both the analyst's and consensus estimates, indicating operational efficiency. Additionally, the Subscription segment, which is the core focus of Logility Supply Chain Solutions, showed promising growth and accounted for a significant portion of the total revenue.
Furthermore, the company's strong financial position, evidenced by a substantial cash reserve and a debt-free balance sheet, provides it with ample flexibility to navigate market uncertainties. Galinko also perceives the market's reaction as overly negative, following a pre-market sell-off, which he considers an overreaction. Consequently, even with a revised lower revenue guidance, the analyst maintains a Buy rating with a 12-month price target, reflecting confidence in the company's long-term prospects.
LGTY's price has also changed slightly for the past six months - from $10.760 to $9.740, which is a -9.48% drop .
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Logility Supply Chain Solutions (LGTY) 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.