DA Davidson assumes coverage on Vertex stock with Neutral rating

Published 07/08/2025, 13:52
DA Davidson assumes coverage on Vertex stock with Neutral rating

Investing.com - DA Davidson has assumed coverage on Vertex (NASDAQ:VRTX) Inc. (NASDAQ:VERX) with a Neutral rating and a price target of $29.00, joining other analysts who have set targets ranging from $29 to $54. According to InvestingPro data, the stock has experienced significant pressure, declining over 18% in the past week.

The research firm’s coverage follows Vertex’s second-quarter 2025 earnings report, which was described as largely in-line with the company’s previous guidance. The company maintains a solid gross profit margin of 65% and has achieved 15% revenue growth over the last twelve months.

Vertex has revised its full-year 2025 guidance downward, which DA Davidson attributes to the uncertain macroeconomic environment.

Despite the near-term adjustment, DA Davidson notes that Vertex’s long-term growth outlook remains on track.

The firm indicates that Vertex’s ongoing growth is expected to be driven by the continuing enterprise resource planning (ERP) upgrade cycle across the industry.

In other recent news, Vertex Inc . reported its second-quarter 2025 earnings, posting a non-GAAP earnings per share of $0.15, slightly surpassing the consensus estimate of $0.14. The company’s revenue stood at $184.6 million, meeting analyst expectations and reflecting a 15% year-over-year growth, with 12% of this being organic growth. Despite these results, analysts have adjusted their outlooks. BMO Capital lowered its price target for Vertex to $30 from $38, citing softer-than-expected results and a slowdown in the SAP ecosystem. Citizens JMP also revised its price target to $50 from $61, maintaining a Market Outperform rating. These adjustments come in the wake of Vertex trimming its annual outlook due to lower usage growth. The earnings report and subsequent analyst reactions highlight ongoing challenges and mixed sentiments surrounding the company’s performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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