Manhattan Associates Is Active in Reporting Good Results With an Inline Outlook; Raising FVE to $142

Narrow-moat Manhattan Associates reported strong fourth-quarter results that came in nicely ahead of our revenue and adjusted EPS expectations. Management again raised guidance for 2022 as active transportation management gains traction and active warehouse management continues to experience accelerating growth. We see the move to the cloud across the portfolio combined with new cloud products and ongoing global supply chain issues as uniquely benefiting Manhattan. Supply chain-related software is clearly seeing stepped up strategic interest from customers given persistent global challenges. We appreciate the detailed guidance, which allowed us to fine-tune our model over the next couple years, while also rolling our DCF forward a year. We see 2022 as a trough for both growth and margins, with help on the way in the form of a strong pipeline and accelerating win rates. These factors combined drive our fair value estimate to $142 per share, from $127. Given the recent pullback in software, we see shares as about fairly valued.