Street Calls of the Week
Investing.com - Jefferies upgraded VTEX (NYSE:VTEX) from Hold to Buy while adjusting its price target to $6.50 from $7.30. The company, currently valued at $764 million, maintains impressive gross profit margins of 76% and shows strong financial health with a current ratio of 3.31. According to InvestingPro analysis, VTEX appears undervalued at current levels.
The upgrade comes despite recent doubts about VTEX’s growth following its second-quarter results, which triggered a 30% decline in the company’s share price.
Jefferies believes this stock sell-off was "exaggerated" as the firm sees VTEX’s medium and long-term growth prospects remaining unchanged.
The investment bank notes that at 15 times EBIT (earnings before interest and taxes), VTEX "doesn’t need to grow top line to justify the current valuation" when assuming mature margins in a scenario without growth.
Jefferies’ analysis indicates VTEX appears undervalued based on both discounted cash flow (DCF) calculations and historical multiples approaches.
In other recent news, VTEX, a global e-commerce platform, released its Q2 2025 earnings report, which showed a mixed performance. The company reported earnings per share of $0.02, aligning with analyst forecasts. However, VTEX’s revenue fell short of expectations, coming in at $58.8 million compared to the projected $60.08 million. Despite meeting earnings projections, the shortfall in revenue highlights challenges the company faces in meeting market expectations. These recent developments reflect ongoing dynamics within the e-commerce sector. Analysts and investors will likely monitor VTEX’s future performance closely to assess its ability to meet revenue targets.
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