JPMorgan downgrades VTEX stock to Neutral on weak growth outlook

Published 08/08/2025, 09:08
JPMorgan downgrades VTEX stock to Neutral on weak growth outlook

Investing.com - JPMorgan downgraded VTEX (NYSE:VTEX) from Overweight to Neutral on Thursday, while lowering its price target to $6.00 from $7.50. The e-commerce solutions provider, currently trading at $5.92 with a market capitalization of $1.08 billion, has maintained strong financial health according to InvestingPro data.

The downgrade follows VTEX’s second-quarter 2025 results, which showed subscription revenue growth of 11.2% year-over-year on a foreign exchange neutral basis, falling below the company’s guidance range of 12.5% to 15.5%. The company maintains impressive gross profit margins of 74.66% and a healthy current ratio of 3.39.

JPMorgan cited deterioration in key markets of Argentina and Brazil as the primary factors behind the weaker-than-expected performance, which prompted VTEX to reduce its full-year 2025 growth guidance to 9%-12%, down from its previous outlook of 14%-17%.

Despite the growth concerns, JPMorgan noted that VTEX’s margins exceeded expectations, leading the company to increase its margin guidance for the year.

The investment bank established a December 2026 price target of $6.00, replacing its previous December 2025 target of $7.50, reflecting reduced visibility into the company’s growth prospects for 2026.

In other recent news, VTEX has been the subject of various analyst reviews, highlighting its potential in the market. Citi initiated coverage on VTEX with a buy rating, setting a price target of $10.00, citing the company’s strong leadership position in Latin America and its global expansion efforts. Similarly, BofA Securities increased its price target for VTEX to $10.00 from $9.50, maintaining a buy rating and noting the company’s recent performance surge.

On the other hand, UBS lowered its price target on VTEX to $10.00 from $11.00, while still maintaining a buy rating, reflecting their analysis of first-quarter results and future expectations. Jefferies took a more cautious approach, initiating coverage with a hold rating and a $7.30 price target. They expressed concerns about potential overestimations of VTEX’s growth prospects and operational leverage, suggesting a possible deceleration in growth.

These recent developments reflect varied perspectives on VTEX’s market position and future potential, with analysts providing different price targets and ratings based on their assessments.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.