On Thursday, DA Davidson affirmed a positive outlook on Manhattan Associates, Inc. (NASDAQ: NASDAQ:MANH) shares, increasing the price target to $260 from $240, while maintaining a Buy rating on the stock. The firm's confidence in Manhattan Associates has been bolstered by the company's recent announcements during its Momentum 2024 event.
At the event in San Antonio, Texas, Manhattan Associates unveiled a significant new addition to its 'Active' portfolio of cloud solutions, namely Supply Chain Planning. This enhancement is expected to deepen the integration and functionality of the company's offerings within customers' supply chain workflows.
Additionally, the introduction of Generative AI features at the Momentum 2024 event was highlighted as a noteworthy development. These advancements are seen as steps that could further cement Manhattan Associates' position in the market.
The analyst emphasized Manhattan Associates' exceptional performance in terms of return on invested capital (ROIC), noting an impressive 134% return. This performance has earned the company the title of a Best-of-Breed Bison within the software sector.
The upgraded price target reflects DA Davidson's recognition of Manhattan Associates' leading position in value capture among its peers. This reassessment follows a previous upgrade by the firm in late April, signaling continued optimism about the company's growth trajectory and market position.
InvestingPro Insights
Manhattan Associates, Inc. (NASDAQ: MANH) continues to garner attention from analysts and investors alike. With a market capitalization of $13.76 billion and a high P/E ratio of 71.4, the company stands out in the software sector. Its recent revenue growth figures are impressive, with an 18.92% increase over the last twelve months as of Q1 2024, and a quarterly revenue growth of 15.18% for Q1 2024. These metrics underscore the company's robust financial health and its ability to expand its market share.
InvestingPro Tips indicate that seven analysts have revised their earnings upwards for the upcoming period, reflecting a consensus that Manhattan Associates is on a path to continued profitability. Moreover, the company's high return on assets at 31.78% for the last twelve months as of Q1 2024 aligns with DA Davidson's note on the company's exceptional ROIC performance. For investors seeking more in-depth analysis and additional InvestingPro Tips for Manhattan Associates, they can explore further at https://www.investing.com/pro/MANH. There are 12 more tips available, which can be accessed with an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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