EU and US could reach trade deal this weekend - Reuters
UBS lowered its price target on Vtex (NYSE:VTEX) to $10.00 from $11.00 on Friday, while maintaining a Buy rating on the stock. The company, currently trading at $6.55, has shown strong momentum with a 12.9% gain year-to-date, despite trading below analyst targets ranging from $7.30 to $12.00.
The price target reduction follows UBS’s updated analysis incorporating first-quarter results and expectations for the second quarter and remainder of 2025. According to InvestingPro data, VTEX maintains impressive gross profit margins of 74.7%, suggesting strong operational efficiency.
UBS reduced its net income forecast for Vtex by nearly 10% due to weakness expected throughout 2025, primarily centered on Latin American markets outside Brazil.
The firm noted that growth in other regions is not yet compensating for the slowdown in Latin American markets excluding Brazil.
Despite the price target cut, UBS maintained its Buy rating on Vtex shares, stating that "the thesis remains solid" for the company.
In other recent news, VTEX has been the focus of attention from analysts at both Jefferies and BofA Securities, resulting in varied outlooks on the company’s stock. Jefferies initiated coverage on VTEX with a Hold rating, setting a price target of $7.30. Their analysis suggests potential challenges ahead due to a deceleration in growth and high costs of equity, indicating that VTEX’s current market position might lead to lower future returns. On the other hand, BofA Securities expressed a more optimistic view by increasing their price target from $9.50 to $10.00 and maintaining a Buy rating. The firm highlighted VTEX’s strong performance and potential for growth, particularly in the U.S. and European markets. BofA’s updated analysis reflects confidence in VTEX’s ability to expand its margins and market presence. Both firms’ perspectives provide investors with contrasting insights into VTEX’s operational and financial prospects. These recent developments are pivotal for investors considering their positions in VTEX shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.