Analyst Bradley Sills from Bank of America Securities reiterated a Hold rating on Vertex and decreased the price target to $24.00 from $34.00.
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Bradley Sills has given his Hold rating due to a combination of factors impacting Vertex’s financial outlook. The company’s Q4 growth outlook was negatively affected by attrition, primarily due to business closures, which are seen as temporary setbacks. Despite this, the growth rate for Q4 is expected to be at the lower end of the industry average, with potential for recovery if the company successfully leverages its e-invoicing offerings and matures its sales pipeline.
Additionally, while Q3 revenue met expectations, the annual recurring revenue growth decelerated, reflecting the impact of attrition. However, Vertex’s strategic investments in partnerships and the integration of the acquired e-invoicing vendor are seen as potential growth catalysts. The upcoming end-of-life support for SAP ECC is also anticipated to drive expansion opportunities. These factors, along with a reasonable valuation, suggest potential for improved performance, justifying the Hold rating.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $23.50 price target.