BMO Capital analyst Daniel Jester maintained a Hold rating on Vertex (VERX – Research Report) yesterday and set a price target of $41.00.
Daniel Jester has given his Hold rating due to a combination of factors influencing Vertex’s current market position and future growth prospects. The company’s recent analyst day highlighted ambitious growth targets, particularly in the area of e-invoicing, which presents significant opportunities due to global regulatory changes. However, these aspirations are largely back-end loaded, following an investment cycle in 2025, suggesting that the benefits may not be immediately realized.
Additionally, while Vertex has shown strong revenue generation from existing customers through pricing, expansion, and cross-selling, the overall risk/reward balance remains uncertain in the near term. The company’s plans to capitalize on cloud ERP migrations and the potential $1.8 billion total addressable market are promising, yet the execution of these strategies remains to be seen. As such, Jester remains cautious, opting to maintain a Hold rating until there is clearer evidence of accelerated growth and successful execution of new investments.
In another report released today, Stifel Nicolaus also maintained a Hold rating on the stock with a $31.00 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 .