DexCom earnings beat by $0.03, revenue topped estimates
On Monday, Truist Securities adjusted its outlook on Manhattan Associates, Inc. (NASDAQ: NASDAQ:MANH), reducing the price target from $285.00 to $180.00, yet reaffirming its Buy rating on the stock. The decision follows a challenging period for the company, whose shares have declined nearly 48% over the past six months, despite maintaining strong fundamentals with a 12.2% revenue growth in the last twelve months. According to InvestingPro data, the company trades at a P/E ratio of 45x, reflecting high growth expectations despite current market uncertainty.
Terry Tillman of Truist Securities noted that estimates for 2025-2026 have been revised downwards, primarily affecting projected revenues from professional services. This revision, however, does not reflect expectations for the first quarter of 2025. Tillman emphasized that the adjustment is not based on the company’s performance in the immediate quarter, as management commentary from the fourth quarter earnings call and discussions with industry contacts suggest a strong cloud business and Remaining Performance Obligations (RPO) for the first quarter. With the next earnings report due on April 22, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which highlight the company’s impressive 76% return on equity and robust gross profit margin of 55%.
The analyst remains optimistic about Manhattan Associates’ financial performance in the near term, anticipating solid results for the first quarter, including stable service revenue dynamics. The lowered price target is attributed to the potential incremental impact on service revenues from the global macroeconomic environment and a slight reduction in the RPO estimate for 2025, which remains within the guidance range.
The revised price target of $180 is based on more conservative long-term discounted cash flow (DCF) assumptions and reduced sector valuations. Despite the cut in the price target, Truist Securities maintains a positive outlook on Manhattan Associates, supporting the stock with a Buy rating. The firm’s analysis indicates that while there is caution due to broader economic factors, the underlying business of Manhattan Associates holds strong potential for growth. InvestingPro analysis shows the company maintains a moderate debt level with a debt-to-equity ratio of 0.17, while achieving an impressive Altman Z-Score of 16.34, indicating strong financial health. For deeper insights into Manhattan Associates’ valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Manhattan Associates has experienced a series of analyst actions impacting its stock outlook. The company’s earnings and revenue results have influenced several firms to adjust their price targets and ratings. Loop Capital downgraded Manhattan Associates from Buy to Hold, citing macroeconomic uncertainties affecting Warehouse Management System migrations, which are crucial to the company’s growth strategy. Piper Sandler lowered its price target to $200, maintaining an Overweight rating, while expressing concerns over service sector volatility and macroeconomic conditions. Similarly, Citi reduced its target to $184 and retained a Neutral rating, following underwhelming fourth-quarter results and a CEO transition.
Conversely, Truist Securities maintained a Buy rating with a $285 target, expressing confidence in Manhattan Associates’ cloud innovation and long-term growth potential in the SaaS segment. William Blair upgraded the stock to Outperform, highlighting the company’s strong position in the supply chain software market and the promising transition to a subscription-based business model. These developments underscore a mix of cautious optimism and concern among analysts regarding Manhattan Associates’ future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.