Research Alert: CFRA Maintains Buy Rating On Shares Of Manhattan Associates Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target price to $166 from $192, on a forward P/E of 31x our 2026 EPS projection of $5.34, below its three year average. We increase our 2026 EPS estimate to $5.34 from $5.20 and our 2027 EPS forecast to $5.89 from $5.87. MANH reported strong Q1 2026 results, with revenue of $282M, up 7.4% Y/Y (vs. 3.2% in Q1 2025), beating consensus by $8.5M, due to cloud subscription growth of 24% and services revenue growth of 4%. We are encouraged by the acceleration in cloud revenues in Q1, as well as solid RPO growth of 24%, reflecting improved execution and demand, despite investor concerns of the impact of macroeconomic uncertainty. Over 55% of new cloud bookings came from net new logos, demonstrating continued market expansion. The company noted that 23% of on-premise customers have converted or started conversion to cloud, with AI as a driver. Taken together, the strength in Q1 results, raised guidance, and AI monetization on the horizon keep us positive on MANH.
