) to hold from buy.
Analyst Brent Thill says he's impressed by the company's fundamentals, market share gains, and growth opportunities. However, based on aggressive revenue growth, with margin expansion embedded in current consensus estimates, and in light of the weak market for applications software, Thill says he can no longer recommend buying Manhattan Associates shares at current levels.
Along with the downgrade, he cut the $169 million 2002 revenue estimate to $167 million, and trimmed the $0.85 2002 earnings per share estimate to $0.80, and cut the $40 target to $35. Thill set a $200 million revenue estimate and $1.05 EPS estimate for 2003. He notes his estimates are below the First Call consensus estimates of $178 million revenues and $0.87 EPS for 2002; and $222 million revenues and $1.15 EPS for 2003.