William Blair analyst Patrick McIlwee has maintained their bullish stance on VERX stock, giving a Buy rating yesterday.
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Patrick McIlwee has given his Buy rating due to a combination of factors, including Vertex’s solid first-quarter performance and an attractive valuation relative to its long-term potential. He views the company’s Value Creation Plan, which materially lifts profit expectations by 2026 and structurally lowers the cost base, as a key driver that should accelerate progress toward higher margins and stronger cash generation.
At the same time, McIlwee believes the market has over-penalized the stock for its reset to more modest, low-double-digit growth, given Vertex’s entrenched position in enterprise tax compliance and its expanding e-invoicing capabilities. With the shares trading at what he considers a compelling multiple of expected 2027 EBITDA, and with management proactively addressing AI-related concerns and operational efficiency, he sees a favorable risk-reward profile that supports a Buy recommendation.
In another report released yesterday, Needham also maintained a Buy rating on the stock with a $20.00 price target.