Vertex cut to Hold at Jefferies amid deterioration in underlying metrics

Jefferies downgraded Vertex (VERX) to Hold from Buy with a price target of $16, down from $28. The company’s Q4 results and 2026 outlook were “just ok”, and the deterioration in the underlying metrics seen in the quarter, paired with the transition uncertainty, leaves the firm with little confidence in the near-term outlook, the analyst tells investors in a research note. The management’s 2026 outlook also makes the long-term targets appear even less achievable, and Jefferies believes they will have to abandon them.