Manhattan Closes Fiscal Year in Style as Cloud Solutions Take the Main Stage; Maintain $155 FVE

Narrow-moat Manhattan Associates reported fourth-quarter results above guidance and our expectations. The firm also raised its outlook for fiscal 2023, driven by a robust demand pipeline for both active transportation management and active warehouse management solutions. We view the combination of Manhattan's cloud-based portfolio, new cloud products and dynamic supply chain environment as uniquely benefitting Manhattan over the next several years. We appreciate the detailed guidance provided for 2023, which we believe reflects management's confidence in business momentum despite macro uncertainty. We maintain our fair value estimate of $155 per share and view the shares as undervalued.