Benchmark Raises Price Target on Manhattan Associates (MANH), Rising Gas Prices & M&A Talks Sustain Valuation Multiples
MANH Hot Sheet
Rating Summary:0 Buy, 2 Hold, 0 Sell
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Benchmark is reiterating its Buy rating on shares of Manhattan Associates, Inc. (NASDAQ: MANH) and is raising its price target from $35 to $37 as the company is highly exposed to a recovery in the retail industry and leveraged to rising fuel costs and recent M&A in the enterprise applications sector.
The firm notes that the stock is up 14% in the last three weeks and 32% since its low in August, but still sees room for growth given current valuation levels.
MANH's transportation lifecycle management (TLM) solutions help trucking companies reduce operational complexity and lower operating costs through last mile sequencing and optimization of delivery routes, the firm estimates that transportation solutions comprise 35%-40% of total revenue. With rising gas prices, many trucking company's will look to technology to offset the rising costs.
Benchmark comments that the recent Epicor (Nasdaq: EPIC) and Lawson (Nasdaq: LWSN) rumors of possible takeovers is a positive for the company. It believes that these talks will sustain the enterprise software valuation multiples as investors likely ask "who's next?"
The company is expected to release its Q1 results on April 19 after the market closes. The firm is estimating a Q1 EPS of $0.40 and a revenue of $76.8 million, and states that the company's performance is inline with its current estimates.
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 $33.27 yesterday, with a 52 week range of $24.78-$33.84.
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The firm notes that the stock is up 14% in the last three weeks and 32% since its low in August, but still sees room for growth given current valuation levels.
MANH's transportation lifecycle management (TLM) solutions help trucking companies reduce operational complexity and lower operating costs through last mile sequencing and optimization of delivery routes, the firm estimates that transportation solutions comprise 35%-40% of total revenue. With rising gas prices, many trucking company's will look to technology to offset the rising costs.
Benchmark comments that the recent Epicor (Nasdaq: EPIC) and Lawson (Nasdaq: LWSN) rumors of possible takeovers is a positive for the company. It believes that these talks will sustain the enterprise software valuation multiples as investors likely ask "who's next?"
The company is expected to release its Q1 results on April 19 after the market closes. The firm is estimating a Q1 EPS of $0.40 and a revenue of $76.8 million, and states that the company's performance is inline with its current estimates.
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 $33.27 yesterday, with a 52 week range of $24.78-$33.84.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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