Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Needham lowered its price target on Vertex Inc. (NASDAQ:VERX) to $30.00 from $40.00 on Tuesday, while maintaining a Buy rating on the tax technology provider. The stock, currently trading at $20.69, has fallen dramatically from its 52-week high of $60.71, with a 61.2% decline year-to-date.
The price target reduction follows Vertex’s pre-announcement of quarterly results coinciding with the appointment of Christopher Young as CEO a few weeks ago, with results aligning with analyst estimates.
Needham noted that Vertex’s fourth-quarter revenue guidance came in $5 million below consensus, with the company also lowering its fiscal year 2025 revenue guidance by approximately the same amount at the midpoint. According to InvestingPro data, five analysts have recently revised their earnings expectations downward for the upcoming period.
The firm identified several factors contributing to the reduced outlook, including accelerated cloud migrations, delayed customer onboarding affecting full-quarter revenue, and ongoing headwinds to entitlement growth and overages.
While Vertex did not provide commentary on 2026 performance, Needham reduced its subscription growth estimate for that year to 10.0% from its previous 14.0% projection, noting that with ARR growth expected to exit 2025 at 12-13%, 2026 revenue growth would likely be "a point or two lower than ARR growth exit rate." Despite current challenges, InvestingPro indicates that net income is expected to grow this year, and analysts predict the company will be profitable in 2025 despite not being profitable over the last twelve months. Discover more insights with the comprehensive Pro Research Report, available for Vertex and 1,400+ other US equities.
In other recent news, Vertex Inc . reported its third-quarter financial results, which showed a slight beat on both earnings and revenue. The company posted non-GAAP earnings per share of $0.17, just above the consensus estimate of $0.16. Revenue was reported at $192.1 million, marginally exceeding analyst expectations of $192.0 million. Despite this, Vertex is facing some growth challenges, as noted by BMO Capital, which lowered its price target for the company to $24 from $30 while maintaining a Market Perform rating. BMO Capital highlighted issues in Vertex’s growth framework, impacting annual recurring revenue growth. Additionally, Citizens adjusted their price target on Vertex to $37 from $50, maintaining a Market Outperform rating despite the mixed results. These recent developments reflect a cautious outlook from analysts regarding Vertex’s future performance.
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