DA Davidson reiterates Buy rating on Manhattan Associates stock with $250 target

Investing.com - DA Davidson has reiterated its Buy rating on Manhattan Associates, Inc. (NASDAQ:MANH) with a price target of $250.00, following the company’s third-quarter 2025 results. The supply chain software provider, currently valued at $11.6 billion, has maintained strong profitability with a gross margin of 56.3% and impressive return on equity of 85%. According to InvestingPro data, six analysts have recently revised their earnings estimates upward for the upcoming period.

The firm maintained its positive outlook after Manhattan Associates delivered what it described as "solid" quarterly results and modest positive revisions to guidance. The $250 price target represents a multiple of 42 times the company’s projected 2026 free cash flow. The company’s current P/E ratio of 56.8x reflects market confidence in its growth trajectory, though InvestingPro analysis indicates the stock is trading near its Fair Value.

Manhattan Associates reported total RPO (remaining performance obligation) growth of 23% year-over-year, which was down 3 percentage points sequentially but aligned with consensus projections. DA Davidson noted this performance positions the company to reach the high end of its full-year constant currency RPO outlook.

The research firm cited accelerating year-to-date bookings trends and new cloud migration initiatives as supporting factors for Manhattan Associates’ outlook. Management also endorsed consensus numbers for 2026 and reaffirmed expectations for cloud growth exceeding 20%.

DA Davidson disclosed that analyst Clark Wright is taking over coverage of Manhattan Associates with this research note, continuing the firm’s positive stance on the supply chain software provider.

In other recent news, Manhattan Associates reported robust third-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an adjusted earnings per share (EPS) of $1.36, which was higher than the forecasted $1.19, marking a 14.29% surprise. Revenue for the quarter reached $276 million, slightly exceeding the anticipated $271.82 million. Truist Securities reiterated a Buy rating on Manhattan Associates, citing strong cloud subscription revenue growth and impressive earnings and cash flow performance. Meanwhile, Stifel adjusted its price target for the company to $240 from $250, maintaining a Buy rating due to strong cloud and services revenue. Morgan Stanley upgraded the stock to Equalweight from Underweight, raising the price target to $200, following slower RPO-based bookings and a preliminary fiscal year 2026 outlook that fell short of investor expectations. These developments highlight Manhattan Associates’ recent performance and the varied responses from analysts regarding its future outlook.

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