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Manhattan Associates (MANH) recently reported quarterly results ahead of expectations, supported by cloud revenue growth, strong new customer bookings, and higher remaining performance obligations. The company is also increasing sales and marketing efforts and rolling out Agentic AI agents across its supply chain platform.
See our latest analysis for Manhattan Associates.
Even with the earnings beat and growing focus on cloud and AI agents, Manhattan Associates’ share price has been relatively muted, with a 1 day share price return of 1.87% and a 90 day share price return showing a 4.67% decline. The 1 year total shareholder return of 38.50% decline contrasts with a 3 year total shareholder return of 39.86% and 5 year total shareholder return of 53.65%. This suggests longer term holders have still seen positive compounding, even as recent momentum has cooled around the current US$177.27 share price.
If this kind of supply chain and AI story interests you, it could be worth widening your search with high growth tech and AI stocks to see what other software names are showing similar themes.
With cloud revenue growing, Agentic AI on the way, and the share price still below some analyst targets, the key question now is whether Manhattan Associates is quietly undervalued or whether the market is already pricing in that potential future growth.
At a last close of $177.27 versus a fair value estimate of about $166.48, the most followed narrative sees Manhattan Associates as pricing in a premium today, while still hinging on specific long term earnings and margin assumptions.
While the company has plans to invest in sales and marketing to leverage its cloud product suite, the associated increased operational expenses might compress operating margins if the expected uptick in top-line growth does not materialize as quickly due to macroeconomic uncertainties.
Curious what sits behind that premium label? The story leans heavily on steady revenue expansion, resilient margins and a future earnings multiple that assumes continued execution. Want to see exactly how those pieces fit together and what kind of long term earnings path is baked into that fair value?
Result: Fair Value of $166.48 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there is still a chance this cautious view is challenged if cloud and services growth stay firm and AI agent adoption translates into stronger earnings resilience.
Find out about the key risks to this Manhattan Associates narrative.
If you look at the numbers and come to a different conclusion, or simply want to test your own assumptions, you can build a custom Manhattan Associates thesis in just a few minutes, starting with Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Manhattan Associates.
If you stop with just one company, you could miss chances that fit your style even better, so put a few more names on your radar today.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MANH.
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