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On Thursday, Vertex (NASDAQ:VRTX) Inc. (NASDAQ: VERX), currently trading at $36.45, received a continued vote of confidence from Citizens JMP, as analyst Patrick Walravens reiterated a Market Outperform rating and a $61.00 price target. According to InvestingPro data, this represents a significant 67% upside potential from current levels, though the platform’s Fair Value analysis suggests the stock may be overvalued at present. This reiteration comes in the wake of Vertex’s first investor day, held yesterday in Philadelphia, which saw the company’s stock rise by 5% following a positive projection for 2028. This uptick occurred despite Vertex shares experiencing a roughly 35% drop year-to-date, a contrast to the S&P 500 and Russell 3000’s 4% decline over the same period.
Walravens’ outlook remains steady following the investor event, maintaining a 2025 non-GAAP EPS estimate of $0.59 on adjusted EBITDA of $164 million and a 15% revenue growth. These projections align with the company’s historical performance, as InvestingPro data shows Vertex has maintained a robust 16% revenue CAGR over the past five years. These figures are closely aligned with the consensus estimates, which are slightly higher at $0.63 for non-GAAP EPS and nearly identical at $163 million for adjusted EBITDA.
Looking ahead to 2026, the analyst continues to hold a non-GAAP EPS estimate of $0.82, which is slightly above the consensus of $0.80, on an adjusted EBITDA forecast of $223 million versus the consensus of $203 million. Revenue growth is again expected to be at 15%. For 2027, Walravens projects a non-GAAP EPS of $1.07, with an adjusted EBITDA of $288 million and a consistent revenue growth rate of 15%, despite the consensus being slightly higher at $1.13 for non-GAAP EPS. While the company currently operates with moderate debt levels and a current ratio of 1.0, its gross profit margin stands at a healthy 63.91%.
The investor day also marked the introduction of Walravens’ 2028 non-GAAP EPS estimate, which stands at $1.29 on an adjusted EBITDA of $347 million, with an anticipated revenue growth of 18%. This projection is part of the reason behind the positive sentiment surrounding Vertex’s future performance and the affirmation of the $61.00 price target.
In other recent news, Vertex Inc. has been the focus of various analyst evaluations following its recent investor events. Needham reaffirmed its Buy rating with a $60 price target, expressing confidence in Vertex’s growth potential over the next few years, particularly due to its strategic investments in e-invoicing and other innovative products. Stifel maintained a Hold rating with a $31 target, noting that while current investments are expected to boost growth, significant acceleration may not be seen until 2026. Raymond (NSE:RYMD) James kept a Market Perform rating, highlighting Vertex’s advantage in the specialized tax content market and its consistent profitability amid ongoing finance and accounting digital transformations.
DA Davidson, despite lowering its price target from $62 to $55, reiterated a Buy rating, citing Vertex’s fundamental strengths and the potential for high incremental margins post-investment. The firm pointed out that market conditions have led to a valuation discount for top-tier vertical software companies, yet it remains optimistic about Vertex’s long-term prospects. Vertex’s management has projected a growth rate of 20% or higher for subscription and total revenue by 2028, with ecosio expected to play a significant role in revenue growth. Despite market reactions to recent investment disclosures, analysts generally express confidence in Vertex’s strategic direction and growth trajectory. These developments highlight the varied perspectives of analysts on Vertex’s future performance in the market.
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