Loop Capital Downgrades Manhattan Associates, Inc. (MANH) to Hold

Loop Capital analyst Mark Schappel downgraded Manhattan Associates, Inc. (NASDAQ: MANH) from Buy to Hold.

The analyst comments "We are downgrading shares of MANH from Buy to Hold and lowering our price target to $170. Our rating change is based on our field checks that indicate recent macro uncertainty is causing customers to delay planned WMS on-prem migrations for the remainder of the year. We view this as significant as migrations accounted for roughly a third of MANH's business in 2024, and we believe migrations were planned to factor more prominently in the firm's 2025 growth mix than in prior years. As such, we believe revenue guidance and consensus estimates have not been sufficiently de-risked, and we expect MANH's business to remain pressured for the rest of the year. While MANH is an exceptionally run franchise and we remain believers in the longer-term opportunity (i.e., WMS replacement cycle, the push into adjacent supply chain areas, favorable competitive standing), it's our sense that the current stock price, despite the recent sell-off, does not reflect a potential falloff in the firm's conversion business. To us, this suggests our rating should be a Hold, not a Buy."

For an analyst ratings summary and ratings history on Manhattan Associates, Inc. click here. For more ratings news on Manhattan Associates, Inc. click here.

Shares of Manhattan Associates, Inc. closed at $166.26 yesterday.

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