Vertex’s Strategic Positioning and Growth Potential: A Buy Recommendation by Chris Quintero

Vertex’s Strategic Positioning and Growth Potential: A Buy Recommendation by Chris Quintero

Morgan Stanley analyst Chris Quintero has maintained their bullish stance on VERX stock, giving a Buy rating today.

Chris Quintero has given his Buy rating due to a combination of factors that highlight Vertex’s potential for sustained growth. The company is positioned to benefit from several secular trends, including increasing tax complexity, the ERP Supercycle, and regulatory changes such as e-invoicing. These trends are expected to drive organizations to reassess their indirect tax and compliance strategies, creating opportunities for Vertex.
Additionally, Vertex’s strategic investments in new technologies like AI-based tools and e-invoicing are anticipated to further enhance its growth trajectory. The company’s management has set ambitious long-term targets, projecting over 20% subscription revenue growth and high-20s adjusted EBITDA margins by 2028. With an attractive valuation at 6X Sales and 24X EBITDA, and a revised price target of $60, Quintero sees a compelling entry point for investors to own a consistent and durable growth story in the software sector.

Quintero covers the Technology sector, focusing on stocks such as Onestream, Inc. Class A, Bill.com Holdings, and Vertex. According to TipRanks, Quintero has an average return of 14.5% and a 45.00% success rate on recommended stocks.

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