Manhattan Associates stock rating upgraded by Morgan Stanley to Equalweight

Investing.com - Morgan Stanley upgraded Manhattan Associates, Inc. (NASDAQ:MANH) from Underweight to Equalweight, while raising its price target to $200.00 from $195.00. The company, currently valued at $12.38 billion, trades at a significant premium with a P/E ratio of 56.8x, according to InvestingPro data.

The upgrade follows Manhattan Associates’ third-quarter results, after which the stock fell approximately 9% in after-hours trading due to significantly slower RPO-based bookings and management’s preliminary fiscal year 2026 outlook falling below investor expectations. Despite these concerns, the company maintains strong fundamentals with an impressive 85% return on equity and a healthy gross profit margin of 56.3%.

Morgan Stanley’s previous Underweight thesis had been based on the belief that market estimates and expectations for Manhattan Associates were too high, but the firm now believes there are "no more negative catalysts on the horizon."

The investment bank noted that consensus estimates for fiscal year 2026 have already been revised downward over the past week, particularly regarding non-cloud revenue segments and RPO (remaining performance obligations).

With Manhattan Associates trading at approximately $185 in after-hours trading following the quarterly report, Morgan Stanley concluded that the stock’s risk/reward profile has improved, justifying the rating change. Analyst targets now range from $195 to $250, with six analysts recently revising their earnings estimates upward. For deeper insights into MANH’s valuation metrics and growth potential, check out the comprehensive analysis available on InvestingPro, which features additional ProTips and detailed financial metrics.

In other recent news, Manhattan Associates reported robust financial results for the third quarter of 2025, 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% positive surprise. Additionally, Manhattan Associates reported revenue of $276 million, slightly above the anticipated $271.82 million. These results indicate strong performance and have been well-received by investors. The earnings report reflects the company’s ability to exceed market projections in both earnings and revenue. Analysts had projected these figures, and the company managed to outperform in both areas. The positive earnings call has been a focal point for investors looking at Manhattan Associates’ recent performance. The company’s ability to surpass expectations demonstrates its current financial health and market position.

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