DoD tests AI models that make it easy to switch from vendors like Palantir
On Friday, Piper Sandler analyst Quinton Gabrielli adjusted the price target for Manhattan Associates, Inc. (NASDAQ:MANH) to $200 from the previous $268, while continuing to support the stock with an Overweight rating. Gabrielli’s reassessment comes in light of the stock’s 39.5% decline year-to-date, with the shares now trading near their 52-week low. According to InvestingPro data, the company maintains strong fundamentals with a "GOOD" Financial Health score, despite recent market pressure.
Gabrielli outlined four central debates influencing investor sentiment: the potential for further cuts in services, the renewal opportunities in 2026, the appropriate multiple to assign to the company’s stock, and the long-term business model. He expressed concerns about the likelihood of a rebound in services, noting the persistent downward revisions in the retail sector, negative macroeconomic indicators, and subdued hiring trends that could lead to continued volatility in the company’s services segment. InvestingPro analysis reveals that 8 analysts have revised their earnings downward for the upcoming period, though the company maintains impressive profitability with a 54.8% gross margin.
Despite these concerns, Gabrielli pointed to the 2026 renewal framework as a positive sign, indicating a potential re-acceleration in recognized revenue obligations. He also maintained that the long-term business model remains compelling, even when factoring in the weaker services performance and a valuation multiple that aligns with the broader software industry.
In conclusion, while the near-term outlook for services has led to a reduction in expectations, Piper Sandler’s stance on Manhattan Associates remains positive due to the attractive long-term opportunities that the company presents. Gabrielli’s comments suggest that, despite short-term headwinds, the firm believes in the company’s ability to recover and grow in the coming years.
In other recent news, Manhattan Associates has seen several key developments. Citi analyst George Kurosawa revised the price target for Manhattan Associates from $244.00 to $184.00, maintaining a Neutral rating following the company’s fourth-quarter results that did not meet expectations. This adjustment coincides with the announcement of a CEO change, which has raised concerns about potential challenges in the professional services sector. Meanwhile, Truist Securities reaffirmed their confidence in Manhattan Associates by maintaining a Buy rating and a $285.00 price target, citing the company’s cloud innovation cycle as a driver for growth.
William Blair also upgraded the stock from Market Perform to Outperform, highlighting the resilience of Manhattan Associates’ cloud pipeline and subscription bookings despite recent challenges. The CEO transition, with Eddie Capel set to retire and Eric Clark taking over, has been a focal point of recent company news. Clark, with his extensive experience in technology leadership, was selected after a comprehensive two-year succession planning process. Analysts from Raymond (NSE:RYMD) James reiterated an outperform rating with a $270.00 price target, emphasizing Capel’s significant contributions to the company’s growth. These developments reflect a period of transition and strategic planning for Manhattan Associates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.