Raymond James has adjusted its valuation on Manhattan Associates, Inc. (NASDAQ: MANH), lowering the price target to $230.00 from $240.00 while retaining an Outperform rating on the shares. The stock was trading at $169.73 at the time of the report, sitting below InvestingPro’s Fair Value estimate and reflecting a roughly 42.48% decline over the trailing 12 months.
The analyst update follows Manhattan Associates’ fourth-quarter 2025 results, which Raymond James characterized as showing "impressive bookings momentum and execution" under CEO Eric Clark. The research note highlights several operational metrics that the firm believes should reassure investors about the company’s cloud transition and subscription growth trajectory.
Key figures spotlighted by Raymond James include a record fourth-quarter remaining performance obligation (RPO) and a newly disclosed 23% fully ramped ARR growth rate. The firm emphasized that net new logos accounted for 55% of new cloud bookings in 2025, an indication of strong traction with new customers. On a trailing twelve-month basis, Manhattan Associates reported $1.07 billion in revenue and a 74% return on equity.
Raymond James acknowledged there may be a timing element as investors assimilate the new metrics, but argued these data points should help allay concerns about Manhattan Associates’ ability to achieve 20% cloud growth. The company is guiding to 21% growth for the year. The firm also cautioned that Manhattan Associates "won’t be immune from broader software volatility," while noting what it called "idiosyncratic catalysts for a durable 20%+ subscription growth profile."
In its earnings release for the fourth quarter of 2025, Manhattan Associates reported adjusted earnings per share of $1.21, topping the consensus estimate of $1.13 and producing a 7.08% earnings surprise. Revenue for the quarter came in at $270.4 million, ahead of the expected $264.68 million. Despite beating expectations on both lines, the company’s stock experienced a decline in after-hours trading following the announcement.
Additional context from InvestingPro metrics tags Manhattan Associates with a financial health score of "GOOD." Yet, even with positive operational indicators and quarterly outperformance, the shares continue to trade beneath the platform’s Fair Value estimate.
The Raymond James view boils down to a mixed-but-constructive stance: the firm trimmed its absolute price target modestly but maintained a positive rating based on what it sees as tangible evidence of repeatable subscription growth and healthy RPO and ARR dynamics. At the same time, the analyst note retains a conservative tone regarding sector-wide software cyclicality.
Summary
Raymond James reduced Manhattan Associates’ price target to $230 while preserving an Outperform rating after the company reported strong fourth-quarter results, disclosed a 23% fully ramped ARR growth rate, and highlighted record RPO and robust new-logo contribution to cloud bookings. Manhattan beat EPS and revenue estimates, but the stock remains below InvestingPro’s Fair Value and has declined about 42.48% over the past year.