Benchmark analyst Mark Schappel acknowledges he considered stepping aside with a downgrade of Manhattan Associates after the company's earnings report and "meaningfully lower" revenue outlook for 2017, but he believes the services business will bottom in Q1, allowing for a resumption of growth in the second half of the year if management executes. He keeps a Buy rating on Manhattan Associates shares, but cut his price target to $65 from $71 on the stock.

DA Davidson upgraded Manhattan Associates to Buy from Neutral with a price target of $240, up from $220. The stock correction this year is overdone, especially following a quarter where the company exceeded expectations and raised guidance, the analyst tells investors in a research note. The firm says the shares now trade below its three-year bottom quartile forward price-to-earnings ratio, "an attractive entry for buyers today." The firm believes Manhattan is a "definitive" return on invested capital leader and "deserves more recognition from the market." Manhattan "generates pre-tax return on invested capital of 135%, a number we had to triple-check and sanity-check with management," writes DA Davidson.