Goldman Sachs initiates VTEX stock with Buy rating, $5.30 price target

Investing.com - Goldman Sachs initiated coverage on VTEX (NYSE:VTEX) with a Buy rating and a $5.30 price target on Thursday, joining other analysts who have set targets ranging from $6 to $12 for the $779 million market cap company.

The investment bank highlighted VTEX’s established position as an eCommerce platform developer serving enterprises throughout Latin America, noting this positions the company to capture growth in the regional market. The company maintains impressive gross profit margins of 76% and a healthy current ratio of 3.3, according to InvestingPro data.

Goldman Sachs acknowledged that VTEX shares have declined approximately 28% year-to-date following below-consensus guidance updates, which has reduced visibility on fundamentals within what it described as a dynamic competitive environment.

The firm pointed to VTEX’s cost-cutting initiatives that have supported margins in recent years, expressing belief that continued focus in this area could drive further progress in free cash flow.

Goldman Sachs also cited VTEX’s "reasonable" valuation if its free cash flow forecasts are met, while noting the company maintains a net cash position equivalent to more than $1.10 per share.

In other recent news, VTEX has released its Q2 2025 earnings report, showing mixed performance. The company reported earnings per share of $0.02, aligning with analyst forecasts, but revenue came in at $58.8 million, falling short of the projected $60.08 million. Despite this revenue miss, UBS has reiterated its Buy rating for VTEX, maintaining a price target of $8.00, expecting growth in subscription revenue to reach $58 million, an 8% increase year-over-year in USD terms. Jefferies also upgraded VTEX from Hold to Buy, adjusting the price target to $6.50 from $7.30, despite concerns about growth following the recent results. These developments reflect a cautious yet optimistic outlook from analysts regarding VTEX’s future performance.

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