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On Thursday, Truist Securities expressed increased confidence in Manhattan Associates, Inc. (NASDAQ:MANH), leading to a raised price target on the company’s shares. Analyst Terry Tillman adjusted the target to $210.00, up from the previous $190.00, while reiterating a Buy rating for the stock. According to InvestingPro data, the company commands a market capitalization of $11.4 billion and trades at a P/E ratio of 53, reflecting high growth expectations. The current analyst consensus recommendation stands at 1.7, indicating a strong buy sentiment.
The adjustment follows Tillman’s attendance at the Manhattan Associates Momentum conference in Las Vegas. Post-conference insights have bolstered Truist Securities’ outlook on the company’s potential, particularly highlighting Manhattan Associates’ sustained growth in cloud subscription revenue and its performance within the top quartile for profit and cash flow. The company’s revenue grew by 9.2% in the last twelve months to $1.05 billion, with a robust gross profit margin of 55.6%.
Tillman’s report after the event emphasized a variety of topics discussed with the management. These included customer priorities in the current macroeconomic environment, revenue generation from artificial intelligence, and the impact of speed and simplicity on growth. Additionally, the analyst noted the company’s professional services business, sales investments, and go-to-market strategies, particularly those involving collaborations with Google (NASDAQ:GOOGL) and Shopify (NASDAQ:SHOP).
The decision to maintain a Buy rating and increase the price target is rooted in higher long-term revenue compound annual growth rate (CAGR) and free cash flow (FCF) assumptions. Truist Securities’ stance reflects a positive outlook on Manhattan Associates’ strategic direction and market position.
Manhattan Associates, a provider of supply chain and omnichannel commerce solutions, has been the focus of investor attention, especially as companies worldwide seek to enhance their logistics and distribution capabilities in a rapidly evolving retail landscape. The raised price target by Truist Securities signals confidence in the company’s growth trajectory and its ability to capitalize on market opportunities. InvestingPro analysis reveals the company’s strong financial health with an overall score of "GREAT" and impressive return metrics, including a 90% return on equity. Discover more detailed insights and 13 additional ProTips about MANH’s valuation and growth prospects with an InvestingPro subscription.
In other recent news, Manhattan Associates has been in the spotlight with several significant developments. The company recently introduced advanced AI-driven capabilities within its Manhattan Active® solutions, marking a notable shift in supply chain management through the use of intelligent digital agents. These AI agents are designed to optimize workflows and enhance user experiences, with general availability expected by Fall 2025. Additionally, Manhattan Associates expanded its partnership with Google Cloud, making its solutions available on the Google Cloud Marketplace. This collaboration aims to accelerate digital transformation for customers by offering streamlined procurement and enhanced supply chain capabilities.
On the financial front, DA Davidson raised its price target for Manhattan Associates to $225, maintaining a Buy rating, reflecting confidence in the company’s strategic direction and growth potential. Truist Securities also maintained its Buy rating with a $190 price target, emphasizing the importance of the company’s recent advancements in AI and strategic partnerships. Baird increased its price target to $212, citing the company’s efforts to promote cloud adoption and the unification of supply chain systems as key growth drivers. These analyst actions indicate a positive outlook for Manhattan Associates, with a focus on its innovative solutions and market positioning.
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