Truist Securities maintained its Buy rating on Manhattan Associates, Inc. (NASDAQ:MANH) and left its price target at $240.00 following the software provider’s fourth-quarter 2025 results. The $240 target implies about a 47% upside from the stock’s current price of $163.46, and analyst targets for the company span a range from $165 to $240.
The quarter included a notable surge in cloud bookings. Manhattan Associates reported a $156 million quarter-over-quarter change in remaining performance obligation, a figure that outpaced consensus expectations of more than $100 million and that more than doubled the cloud bookings recorded in the company’s third quarter of 2025. Truist pointed to strong new logo activity as a primary driver of the record cloud bookings tally.
Management also disclosed a four-year fully ramped annual recurring revenue metric, which underpinned Truist’s view that the company can sustain "sustained strong 20%+ cloud subscription revenue visibility." The firm further cited Manhattan Associates’ robust financial profile, including a 74% return on equity and healthy cash generation, as evidence of durable performance.
Manhattan Associates has sustained modest revenue expansion, reporting $1.07 billion in revenue and 4.1% growth over the last twelve months. Truist’s post-quarter review led the firm to modestly raise its estimates for revenue, operating income (EBIT) and free cash flow for the company.
Despite ongoing headwinds associated with the industrywide shift from traditional license business to cloud offerings, Truist noted that Manhattan Associates continues to deliver what it called "top quartile operating profit and cash flow performance." External financial-health indicators referenced in the company’s coverage include an InvestingPro overall financial health score of "GOOD" and an Altman Z-Score of 16.55, a level that signals very low bankruptcy risk.
Valuation remains a point of focus. Manhattan Associates trades at a trailing price-to-earnings ratio of 46.75. InvestingPro also highlights additional valuation and prospect insights for the stock through its Pro Research Report and a set of 10 ProTips available for MANH as part of broader coverage of more than 1,400 U.S. equities.
On the earnings front, Manhattan Associates topped Wall Street expectations for the fourth quarter of 2025. The company reported earnings per share of $1.21 versus the consensus estimate of $1.13, and revenue of $270.4 million compared with the anticipated $264.68 million.
Among other analyst moves, Raymond James lowered its price target for Manhattan Associates to $230 from $240 while keeping an Outperform rating. The firm pointed to "impressive bookings momentum and execution" under CEO Eric Clark as part of its rationale.
Taken together, the results and analyst commentary highlight the company’s accelerating cloud bookings, an earnings beat, and analyst affirmation of its business momentum, while also underscoring valuation and transition-related pressures tied to the license-to-cloud shift.
Summary
Truist confirmed a Buy rating with a $240 price target after Manhattan Associates posted record cloud bookings and beat quarterly earnings and revenue expectations. The firm pointed to new logo wins and a newly disclosed four-year fully ramped ARR metric to support sustained cloud subscription revenue visibility above 20%.
Key points
- Truist reiterated Buy and a $240 price target, implying roughly 47% upside from a $163.46 stock price; analyst targets range from $165 to $240.
- Manhattan reported record cloud bookings, with a $156 million quarter-over-quarter change in RPO that exceeded consensus estimates of over $100 million and more than doubled Q3 2025 cloud bookings.
- Fourth-quarter results beat estimates: EPS $1.21 versus $1.13 expected, and revenue $270.4 million versus $264.68 million forecast; Raymond James trimmed its price target to $230 but kept an Outperform rating.
Risks and uncertainties
- The ongoing industry shift from license-based sales to cloud offerings represents a headwind for the company and the enterprise software sector.
- High valuation metrics, including a P/E of 46.75, could increase sensitivity to any slowdown in growth or execution risks in the software and cloud markets.
- Projections for sustained "20%+ cloud subscription revenue visibility" rely on a newly disclosed four-year fully ramped ARR metric, which may limit the transparency of near-term forward visibility for investors.