Does Slowing Billings And Softer Margins Change The Bull Case For Manhattan Associates (MANH)?

• In recent days, analysts have highlighted Manhattan Associates’ underwhelming billings growth, soft revenue expectations and comparatively weaker gross margins, underscoring mounting operational challenges.
• This emerging focus on demand headwinds and structural profitability is reshaping how the market assesses the company’s long-term competitive position.
• We’ll now examine how these concerns about billings momentum could influence Manhattan Associates’ investment narrative over the coming weeks and months.

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What Is Manhattan Associates' Investment Narrative?

To own Manhattan Associates today, you have to believe its warehouse, order management and store software remains critical infrastructure for retailers and brands, even as growth cools. The investment case has leaned on high returns on equity, consistent buybacks and a steady, if unspectacular, revenue outlook. That story is now being tested by the recent focus on underwhelming billings growth, softer revenue expectations and weaker gross margins than many software peers. These updates put more weight on near term demand indicators, large cloud and omni-channel wins, and early traction from new AI and order-fulfilment products as key catalysts. At the same time, the pullback in the share price and still-supportive analyst ratings suggest the market is reassessing, not abandoning, the thesis.

But there is one profitability risk here that investors should not ignore. Despite retreating, Manhattan Associates' shares might still be trading 22% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Six fair values from the Simply Wall St Community stretch from about US$24 to US$239, showing very different expectations. Set against fresh concerns about billings momentum and gross margins, this range underlines how differently people view Manhattan Associates’ ability to convert its product pipeline into sustained performance.

Explore 6 other fair value estimates on Manhattan Associates - why the stock might be worth as much as 36% more than the current price!

Build Your Own Manhattan Associates Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Manhattan Associates research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Manhattan Associates research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Manhattan Associates' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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