Manhattan Reports Another Strong Quarter Driven by Cloud Demand; Maintain $155 FVE

Narrow-moat Manhattan Associates reported third-quarter results above both guidance and our expectations. Management again raised guidance for 2022 for revenue and earnings per share, driven by strength in deployment for both active transportation management and active warehouse management solutions. We believe the combination of Manhattan’s cloud-based portfolio, new cloud products, and persistent global supply chain challenges is uniquely beneficial for the company over the next several years. Given the macro uncertainty, we appreciate the guidance for 2023, which was slightly below our model. We maintain our fair value estimate of $155 per share and view shares as modestly undervalued.