Buy Rating Affirmed for Manhattan Associates on Strong Market Position and Innovative Solutions

D.A. Davidson analyst Gil Luria reiterated a Buy rating on Manhattan Associates (MANH – Research Report) today and set a price target of $260.00.

Gil Luria has given his Buy rating due to a combination of factors that underline Manhattan Associates’ strong position in the market and its innovative product offerings. Manhattan Associates, a software company specializing in supply chain and omnichannel commerce solutions, has recently expanded its portfolio with a significant new addition to its ‘Active’ cloud solutions, demonstrating its commitment to advancing supply chain workflows. The company’s introduction of features like Generative AI at their Momentum 2024 event indicates a forward-thinking approach that could provide a competitive edge. Notably, Manhattan’s return on invested capital (ROIC) is exceptionally high, marking it as a leader within the software sector. This, combined with consistent free cash flow generation and a history of returning capital to shareholders, presents a compelling case for investment.
Furthermore, the positive feedback from customers at the Momentum User conference reinforces the company’s robust customer service and product satisfaction. Manhattan Associates’ diversified product range and rapid innovation, including the new Iris software for point of sale and Fulfillment Insights for omnichannel solutions, are expected to drive growth and attract new customers. Luria’s analysis, which positions Manhattan in the third quartile on the Rule of X and as the leader in ROIC, underpins the decision to raise the price target to $260. This valuation reflects Manhattan’s superior return profile and is based on multiples of next twelve months (NTM) sales and free cash flow.

In another report released on May 14, Robert W. Baird also maintained a Buy rating on the stock with a $251.00 price target.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MANH in relation to earlier this year.

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Manhattan Associates (MANH) Company Description:

Manhattan Associates, Inc. engages in designing, building and delivering supply chain commerce solutions by converging front-end sales with back-end supply chain. It operates through the following geographical segment: The Americas; Europe, Middle East, and Africa; and Asia Pacific. The company was founded by Deepak Raghavan in October 1990 and is headquartered in Atlanta, GA.