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Investing.com - Citi initiated coverage on VTEX (NYSE:VTEX) with a buy rating and a $10.00 price target on Monday, representing significant upside from the current trading price of $6.39. According to InvestingPro data, analysts’ targets for VTEX range from $7.30 to $12.00, with multiple analysts recently revising earnings estimates upward.
The investment bank cited VTEX’s consolidating leadership position in Latin America and growing contribution from global expansion as key factors supporting its bullish outlook on the company’s long-term growth trajectory. InvestingPro analysis reveals impressive gross profit margins of 74.66% and a strong financial health score rated as "GREAT," supporting the company’s expansion capabilities.
Citi highlighted that economics for VTEX’s mature operations already appear solid, with Latin America and existing stores showing operating margins of approximately 30% and 43%, respectively. The firm also noted improving customer acquisition cost efficiency, which reached about 47% in 2024, up from 34% in 2022. Financial data from InvestingPro shows the company maintains a healthy current ratio of 3.39, with liquid assets well exceeding short-term obligations.
The bank identified several potential short-term catalysts, including expected solid double-digit year-over-year growth in USD during the second half of 2025, the company’s inclusion in the Russell 3000 index by June 30, and the potential unveiling of anchor global clients.
Citi also pointed to the active involvement of VTEX’s founders, who serve as co-CEOs and maintain significant economic and voting stakes of 39% and 76%, respectively, which the firm believes supports strong alignment and reduces execution risk.
In other recent news, Vtex has garnered attention from several major financial firms regarding its stock performance and future prospects. BofA Securities has increased its price target for Vtex to $10.00 from $9.50, maintaining a Buy rating. The firm cites improved forecasts for Vtex’s margins and growth, particularly in the United States and Europe, as reasons for their optimism. UBS also maintains a Buy rating but has lowered its price target to $10.00 from $11.00, citing a weaker outlook in Latin American markets outside Brazil. Despite the reduction, UBS believes the investment thesis for Vtex remains solid.
Meanwhile, Jefferies initiated coverage on Vtex with a Hold rating and a price target of $7.30. Jefferies suggests that while Vtex’s business model is compelling, there are concerns about potential deceleration in growth and high costs of equity. The firm believes the stock is fairly valued at its current price and multiples. These recent developments reflect varied perspectives on Vtex’s growth potential and market valuation among analysts. Investors may be interested in observing how these analyses affect Vtex’s market performance in the coming months.
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