Manhattan Associates recently unveiled significant AI enhancements to its Manhattan Active Omni and Active platform, integrating embedded agentic AI for retail and supply chain improvement. Key features include the Manhattan Agent Foundry, which enables customers to create customizable AI agents. This move aims to reinforce the company’s position as a “systems-of-record” platform, promoting practical automation over experimental AI. Despite recent stock price increases, shares may still be undervalued by 30%. Investors must assess adoption risks of these new AI tools amidst slower earnings growth than the broader software sector. Various fair value estimates suggest Manhattan could be worth 43% more than current levels, highlighting investor sentiment division. As the company positions itself for Q4 2025 earnings, the successful integration of AI capabilities is crucial for driving future contract wins and revenue growth. Overall, a comprehensive evaluation of Manhattan Associates is essential for informed investment decisions.
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