Morgan Stanley names eBay a top pick as the live platform takes off

Morgan Stanley upgraded Manhattan Associates' stock rating to Overweight from Equalweight, raising its price target to $250 from $180. The company's stock currently trades at $205 with a market capitalization of $11.95 billion, although it is considered slightly overvalued relative to its Fair Value estimate. Analyst Chris Quintero noted that the upgrade is due to accelerating bookings driven by structural go-to-market changes and early AI traction.

Morgan Stanley identified three key factors behind the rating change: accelerating cloud bookings, a shift in investor narrative, and the company's strong six-month return. The firm sees an opportunity for valuation upside as Manhattan Associates shifts from being an AI debated stock to an AI beneficiary. The company's emergence in vertical software has created opportunities for AI to automate existing workflows, especially in their core retail end market.

Manhattan Associates reported stronger-than-expected Q2 2026 results, outpacing Wall Street forecasts with adjusted earnings of $1.39 per share and revenue of $297.8 million. Truist Securities maintained a Buy rating with a $240 price target, while Stifel increased its price target to $225, citing record cloud bookings and strong growth.

DA Davidson, however, downgraded the stock to Neutral with a $210 price target due to its strong performance.