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Investing.com - Truist Securities has reiterated a Buy rating and $230.00 price target on Manhattan Associates, Inc. (NASDAQ:MANH) following the company’s third-quarter 2025 performance. The stock, currently trading at $189.50, has received positive attention from analysts, with InvestingPro data showing six analysts recently revising their earnings estimates upward for the upcoming period.
The firm highlighted Manhattan Associates’ "durable cloud subscription revenue growth and best-in-class earnings and cash flow performance" in the quarter. The company’s strong performance is reflected in its impressive financial metrics, with a return on equity of 85% and revenue growth of 6.13% over the last twelve months, according to InvestingPro. While cloud bookings modestly missed Truist’s estimates, they exceeded Street expectations despite seasonality and some large deal lumpiness affecting overall bookings.
Truist noted the fourth quarter is typically seasonally stronger and sees no reason why cloud bookings won’t end on a strong note. The firm indicated Manhattan Associates expressed comfort with 2026 consensus estimates, which prompted Truist to slightly raise its own projections.
The research firm believes the market underappreciates Manhattan Associates’ visibility into cloud subscription revenue growth of at least 20% in 2026. Truist identified a growing number of catalysts that could drive strong cloud bookings and remaining performance obligation (RPO) performance with expanding margins and free cash flow.
Truist recommended investors buy the stock on any weakness related to third-quarter RPO results and market concerns about maintaining 20%+ cloud subscription revenue growth. With analyst price targets ranging from $195 to $250, and the stock currently trading below its Fair Value according to InvestingPro, investors seeking detailed analysis can access the comprehensive Pro Research Report, available exclusively to subscribers.
In other recent news, Manhattan Associates reported robust third-quarter 2025 earnings that exceeded Wall Street expectations. The company achieved an adjusted earnings per share of $1.36, surpassing the forecast of $1.19, marking a 14.29% surprise. Revenue for the quarter reached $276 million, slightly above the anticipated $271.82 million. These results were primarily driven by strong cloud subscription revenue and services revenue, benefiting from pull-forward effects from the fourth quarter. Following the earnings announcement, Stifel adjusted its price target for Manhattan Associates to $240, down from $250, while maintaining a Buy rating. Meanwhile, Morgan Stanley upgraded the company’s stock rating from Underweight to Equalweight, raising its price target to $200 from $195. This upgrade came despite a drop in after-hours trading, attributed to slower RPO-based bookings and a preliminary fiscal year 2026 outlook that fell below investor expectations. These developments highlight the mixed reactions from analysts and investors regarding Manhattan Associates’ recent performance and future outlook.
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