From Seekingalpha · The Market Auditor · · 50s
Manhattan Associates: Software Quality vs. High Price
Manhattan Associates software is strong but priced too high for investors.
In brief
Manhattan Associates software is strong but priced too high for investors. Manhattan Associates has strong warehouse software but high valuation at 36x next year's EPS makes it a hold. Originally reported by Seekingalpha.
Market Rating
Manhattan Associates is rated a hold due to strong fundamentals but a stretched valuation at 36x next year's EPS.
Cloud Growth
Cloud revenue is growing 26% and AI Active Agents are gaining traction.
Customer Conversion
Only 25% of the customer base has converted to cloud.
Q3 Guidance
Q3 guidance is already at the high end of expectations with limited upside.
Investment Thesis
An attractive entry point near $200, $209 on a post-earnings dip.
In short
Manhattan Associates has strong warehouse software but high valuation at 36x next year's EPS makes it a hold.
