Benchmark Maintains a 'Buy' on Manhattan Associates (MANH); Is Another Tree About to Fall in the Application Forest?
MANH Hot Sheet
Rating Summary:0 Buy, 2 Hold, 0 Sell
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Benchmark maintains a 'Buy' on Manhattan Associates, Inc. (NASDAQ: MANH), PT $37.
Benchmark analyst says, "We attribute the recent move in MANH’s shares to takeover speculation. We’ve long believed that MANH was an attractive acquisition candidate given its established brand, extensive customer base, retail domain expertise and industrial strength supply chain execution product line. In our view, the most likely bidders for MANH include JDA Software (Nasdaq: JDAS)(not rated), Oracle (Nasdaq: ORCL), private equity-backed Infor and RedPrairie Software with potential long shot bids coming from SAP and other private equity firms. We would add that both JDA Software and RedPrairie Software have an acquisitive history, and MANH and RedPrairie have discussed merging in the past...We think takeout premiums for MANH are likely to range between 2.2x-2.7x TTM revenue (ex-cash) based on prior deals, MANH’s size and its financial health. This implies a $36-$41 per share takeout price."
"We continue to believe pending takeover announcements and deal valuations by midrange application peers Epicor (Nasdaq: EPIC)(Buy) and Lawson (Nasdaq: LWSN)(Hold) are positive for MANH. EPIC and LWSN are being acquired for 2.0x and 2.4x TTM sales, respectively."
For more ratings news on Manhattan Associates, Inc. click here and for the rating history of Manhattan Associates, Inc. click here.
Shares of Manhattan Associates, Inc. closed at $37.18 yesterday, with a 52 week range of $24.78-$37.23.
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Benchmark analyst says, "We attribute the recent move in MANH’s shares to takeover speculation. We’ve long believed that MANH was an attractive acquisition candidate given its established brand, extensive customer base, retail domain expertise and industrial strength supply chain execution product line. In our view, the most likely bidders for MANH include JDA Software (Nasdaq: JDAS)(not rated), Oracle (Nasdaq: ORCL), private equity-backed Infor and RedPrairie Software with potential long shot bids coming from SAP and other private equity firms. We would add that both JDA Software and RedPrairie Software have an acquisitive history, and MANH and RedPrairie have discussed merging in the past...We think takeout premiums for MANH are likely to range between 2.2x-2.7x TTM revenue (ex-cash) based on prior deals, MANH’s size and its financial health. This implies a $36-$41 per share takeout price."
"We continue to believe pending takeover announcements and deal valuations by midrange application peers Epicor (Nasdaq: EPIC)(Buy) and Lawson (Nasdaq: LWSN)(Hold) are positive for MANH. EPIC and LWSN are being acquired for 2.0x and 2.4x TTM sales, respectively."
For more ratings news on Manhattan Associates, Inc. click here and for the rating history of Manhattan Associates, Inc. click here.
Shares of Manhattan Associates, Inc. closed at $37.18 yesterday, with a 52 week range of $24.78-$37.23.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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