DA Davidson lifts MANH stock target to $225, maintains Buy rating

On Wednesday, DA Davidson set a new price target for Manhattan Associates, Inc. (NASDAQ: NASDAQ:MANH) shares, increasing it to $225 from the previous $200 while keeping a Buy rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 53.3 and maintains a "GREAT" financial health score. The adjustment comes after DA Davidson analysts attended the company’s Momentum conference in Las Vegas, where the focus was on the theme of ’Unification.’

Analysts observed a consistent message throughout the conference, highlighting Manhattan Associates’ commitment to integrating its product offerings. With a robust gross profit margin of 55.6% and revenue growth of 9.2% over the last twelve months, the company has demonstrated strong operational execution. Executives, customers, and partners all emphasized the company’s efforts to drive greater adoption of its products and to expedite implementations, thereby delivering a quicker return on investment (ROI) to clients.

DA Davidson’s new price target represents a valuation of the enterprise at 38 times EBITDA and 13 times revenue. These multiples place Manhattan Associates in the top quartile of DA Davidson’s Vertical/Back Office peer set. The firm’s analysis indicates that Manhattan Associates’ shares are currently trading in the second quartile of its historical relative multiple to these peers, suggesting an attractive risk/reward profile.

The analyst’s statement highlighted that the unique growth drivers and competitive position of Manhattan Associates differentiate it from other businesses in the Vertical/Back Office software sector. The raised price target reflects confidence in the company’s strategic direction and potential for continued growth.

Manhattan Associates, known for its supply chain and omnichannel commerce solutions, is expected to make strategic investments to further enhance its product suite’s adoption and to accelerate the delivery of ROI, as indicated by the insights gathered during the Momentum conference. For deeper insights into Manhattan Associates’ valuation and growth prospects, including 13 additional ProTips and comprehensive financial analysis, visit InvestingPro, where you’ll find detailed research reports and expert analysis.

In other recent news, Manhattan Associates Inc. reported significant advancements in its product offerings and strategic partnerships. The company unveiled new AI-driven supply chain agents, such as the Intelligent Store Manager and Labor Optimizer Agent, designed to enhance supply chain operations through autonomous task performance and real-time optimization. Additionally, Manhattan Associates expanded its partnership with Google (NASDAQ:GOOGL) Cloud, aiming to streamline digital transformation for customers by integrating its solutions with Google Cloud services. This collaboration is expected to improve agility and efficiency in supply chain management.

Analyst firms have shown confidence in Manhattan Associates’ growth potential. Truist Securities maintained a Buy rating with a price target of $190, highlighting the company’s advancements in AI and strategic partnerships. Meanwhile, Baird analysts raised their price target to $212, citing the company’s cloud adoption efforts and innovative product offerings as key growth drivers. The introduction of AI agents and the focus on cloud solutions are anticipated to strengthen the company’s market position.

In leadership developments, Manhattan Associates announced changes to its board following retirements. Eddie Capel has been appointed as Executive Chairman, while Danielle Sheer has joined the board, bringing expertise in data protection and management software. These board changes reflect the company’s ongoing commitment to strategic growth and leadership in the supply chain software market.

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