Manhattan Associates Enjoys Strong Results Fueled by Stellar Cloud Growth; FVE Up to $155

Narrow-moat Manhattan Associates reported second-quarter results that came in ahead of both guidance and our expectations. Management again raised its outlook for 2022, as the cloud transition gains positive momentum for both active transportation management and active warehouse management. We believe Manhattan’s cloud-based portfolio combined with new cloud products and persistent global supply chain challenges leaves the company uniquely poised to benefit over the next several years We appreciate the detailed guidance allowing us to fine-tune our model, which we view as largely in line with management’s outlook. Given upside to results and a constructive outlook, we are increasing our fair value estimate to $155 per share from $149 and view the shares as attractive.