Manhattan Associates (MANH) Reported Cautious 2025 Outlook Despite Reporting Strong 2024 Results

Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Small Company Fund fared worse compared to its benchmark in the first quarter and declined 16.03% vs 11.12% decline for the Russell 2000® Growth index. The underperformance in the quarter was led by negative investor sentiment due to geopolitical shocks or the sudden deterioration of the macroeconomic outlook. In addition, check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, The Brown Capital Management Small Company Fund highlighted stocks such as Manhattan Associates, Inc. (NASDAQ:MANH). Manhattan Associates, Inc. (NASDAQ:MANH) provides software solutions to manage supply chains, inventory, and omnichannel operations. The one-month return of Manhattan Associates, Inc. (NASDAQ:MANH) was -1.20%, and its shares lost 12.47% of their value over the last 52 weeks. On June 9, 2025, Manhattan Associates, Inc. (NASDAQ:MANH) stock closed at $193.65 per share, with a market capitalization of $11.757 billion.

The Brown Capital Management Small Company Fund stated the following regarding Manhattan Associates, Inc. (NASDAQ:MANH) in its Q1 2025 investor letter:

“There was plenty of news to shake investors in the first quarter of 2025, most of it coming out of Washington, D.C. First, there is the Trump administration’s approach to implementing tariffs, which has left companies around the world wondering what levies are real and what are not. In the absence of answers, many businesses are reining in spending. For example, Manhattan Associates, Inc. (NASDAQ:MANH) reported strong 2024 annual results with new records in revenue, operating profit, free cash flow and earnings per share. However, the company also reported a cautious outlook for 2025 due to the tariffs, the global economy and government downsizing, which are causing Manhattan’s customers to reduce planned services work for the upcoming year.”

Is Manhattan Associates Inc. (MANH) the Best Growth Stock to Invest In According to Analysts?

A woman and man in formal attire in a meeting room discussing the latest enterprise solutions technology from the company.

Manhattan Associates, Inc. (NASDAQ:MANH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Manhattan Associates, Inc. (NASDAQ:MANH) at the end of the first quarter, which was 34 in the previous quarter. For the first quarter of 2025, Manhattan Associates, Inc.’s (NASDAQ:MANH) total revenue was $263 million, up 3% from the previous year’s comparable quarter. While we acknowledge the potential of Manhattan Associates, Inc. (NASDAQ:MANH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Manhattan Associates, Inc. (NASDAQ:MANH) and shared Polen US SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.