11:43 AM EDT, 10/14/2025 (MT Newswires) -- Manhattan Associates ( MANH ) and SPS Commerce ( SPSC ) have underperformed the broader software sector this year as both supply-chain specialists "reset growth expectations" heading into their Q3 earnings reports, Morgan Stanley said Tuesday in a report.

For Manhattan Associates ( MANH ), "we lean tactically positive as we expect a strong Q3 beat across the board as well as a strong initial guide" for 2026 remaining performance obligations," the report said.

Positive signals from cloud trends support optimism for 20% growth in 2026, though structural shifts in services have led to lower estimates for 2026 and 2027, Morgan Stanley said.

For SPS Commerce ( SPSC ), "we see the potential for upside" to 2026 consensus estimates in Q4 as the rapidly expanding SupplyPike and Carbon6 software tools for retail and e-commerce sellers transition to fully organic growth, Morgan Stanley said.

SPS may guide 2026 total revenue above the current consensus of 9% on an organic basis, and Q4 may be a "better catalyst" for the stock, the report said.

Morgan Stanley lowered its price target on Manhattan Associates ( MANH ) to $195 from $205 and kept its underweight rating. The firm cut its target on SPS to $140 from $170 and maintained its overweight rating.

Manhattan Associates ( MANH ) is scheduled to report earnings on Oct. 21 with SPS set for Oct. 23.

Manhattan Associates ( MANH ) shares fell 0.2% in recent Tuesday trading, SPS rose 0.1%.

Price: 200.44, Change: -0.32, Percent Change: -0.16