Paradis Paul, director & president at Sezzle, sells $472k in shares
Investing.com - BMO Capital lowered its price target on Vertex (NASDAQ:VRTX) Inc. (NASDAQ:VERX) to $30.00 from $38.00 on Thursday, while maintaining a Market Perform rating on the tax software provider. The new target sits near the low end of analyst projections, which range from $29 to $54, according to InvestingPro data.
The price target reduction follows Vertex’s softer-than-expected second-quarter results, which reflected lower usage growth and a slowdown in the SAP ecosystem, prompting the company to trim its outlook for the year. Despite challenges, the $4.29 billion market cap company maintained 15% revenue growth, though InvestingPro data shows six analysts have recently revised their earnings expectations downward.
BMO Capital noted that near-term visibility for Vertex has lessened, and the firm had previously cautioned that shares had embedded "too much, too soon" for SAP migrations given uncertainty around deal cadence in what is a multi-year journey.
The investment bank suggested that Vertex’s investments in e-invoicing capabilities and potentially improving macroeconomic trends could serve as catalysts for better momentum heading into next year.
The revised $30 price target assumes limited near-term demand improvement for Vertex’s tax compliance solutions.
In other recent news, Vertex Inc . reported its second-quarter earnings for 2025, revealing a slight earnings beat. The company posted non-GAAP earnings per share of $0.15, slightly surpassing the consensus estimate of $0.14. Revenue for the quarter stood at $184.6 million, meeting analyst expectations and marking a 15% year-over-year increase, with 12% of that growth being organic. Despite the positive earnings report, Citizens JMP adjusted its price target for Vertex from $61.00 to $50.00. However, the firm maintained its Market Outperform rating. This adjustment follows the earnings release, which, although modestly positive, did not prevent a notable decline in stock value due to broader market concerns and specific challenges faced by the company. These developments indicate a mixed outlook for Vertex, as reflected in the analyst’s revised price target and maintained rating.
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