Analyst Bradley Sills of Bank of America Securities reiterated a Hold rating on Vertex (VERX – Research Report), retaining the price target of $44.00.
Bradley Sills has given his Hold rating due to a combination of factors influencing Vertex’s current market position and future prospects. The company has set ambitious growth and margin targets, with a high-teens growth target that appears achievable through the expansion of their eInvoicing market and steady growth in their core sales tax offerings. However, the margin target of high 20s seems optimistic, especially considering the competitive nature of the sales tax category and the necessary investments required.
Furthermore, while Vertex is making strategic moves by strengthening partnerships with major players like SAP and Oracle and investing in customer success, these efforts are still in the early stages. The company’s AI initiatives and new product developments, such as Ecosio’s eInvoicing, are promising but require successful execution to meet the high expectations set for 2028. The Hold rating reflects a cautious optimism, acknowledging the potential for growth while recognizing the challenges in achieving the lofty margin targets.
In another report released yesterday, Raymond James also reiterated a Hold rating on the stock with a $0.00 price target.
VERX’s price has also changed slightly for the past six months – from $37.070 to $36.450, which is a -1.67% drop .