Manhattan Associates Enjoys Good Quarter Based on Accelerating Cloud Demand; FVE Up to $149

Narrow-moat Manhattan Associates kicked off fiscal 2022 with record first-quarter results that meaningfully beat guidance and was ahead of our expectations for key metrics. Management raised guidance for 2022 as the move to the cloud intensifies for both active transportation management and active warehouse management. We view Manhattan’s move to the cloud combined with new solutions and ongoing global supply chain issues as uniquely valuable for the company to benefit. With the persistent global challenges, customers are integrating supply chain-related software into their core strategy, placing Manhattan’s superior offerings in demand. We appreciate the detailed guidance allowing us to focus our model, which we view as largely in line with achievable guidance. Based on better results and guidance, we are raising our fair value estimate to $149 per share from $142. Like with much of our software coverage, we view shares as attractive.