Vertex stock price target lowered to $50 by Citizens JMP on mixed earnings

Published 07/08/2025, 10:12
Vertex stock price target lowered to $50 by Citizens JMP on mixed earnings

Investing.com - Citizens JMP lowered its price target on Vertex (NASDAQ:VRTX) Inc. (NASDAQ:VERX) to $50.00 from $61.00 on Thursday, while maintaining a Market Outperform rating following the company’s second-quarter 2025 earnings report. The stock, currently trading at $27.10, has declined over 18% in the past week, according to InvestingPro data.

The tax technology provider reported non-GAAP earnings per share of $0.15, slightly above the consensus estimate of $0.14, on revenue of $184.6 million that matched analyst expectations and represented 15% year-over-year growth, with 12% being organic. This performance aligns with the company’s consistent revenue growth trajectory, maintaining a robust 16% CAGR over the past five years.

Vertex posted subscription revenue of $157.8 million, up 16% year-over-year but falling short of the $158.9 million consensus forecast, while annual recurring revenue reached $636.6 million, representing 16% year-over-year growth but showing a deceleration from 18% in the previous quarter.

The company’s cloud revenue maintained its 30% year-over-year growth rate, unchanged from the previous quarter, but free cash flow of $19.6 million significantly missed the consensus estimate of $34.7 million.

Despite lowering the price target, Citizens JMP maintained its Market Outperform rating on Vertex shares, suggesting continued confidence in the company’s long-term prospects despite what the firm characterized as "disappointing" quarterly results.

In other recent news, Vertex Inc . reported its second-quarter earnings for 2025, achieving a modest earnings beat with an earnings per share (EPS) of $0.15, slightly above the forecasted $0.14. Revenue for the quarter was reported at $184.6 million, aligning with expectations set by analysts. Despite these results, the company’s stock faced a significant decline in pre-market trading, attributed to investor concerns over broader market conditions and specific challenges faced by Vertex. These developments highlight the complexities in the current market environment affecting Vertex Inc. No recent mergers or acquisitions were reported for the company. Additionally, there were no analyst upgrades or downgrades mentioned in the latest reports. Investors remain attentive to how Vertex navigates these challenges moving forward.

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