Vertex price target lowered to $23 from $28 at Stifel

Stifel analyst Brad Reback lowered the firm’s price target on Vertex (VERX) to $23 from $28 and keeps a Hold rating, noting that shares traded off about 10% as management reduced the FY25 revenue guidance for the second straight quarter, stemming from a combination of factors. Given the company’s FY25 exit subscription growth rate of about 10%, the potential for lingering growth headwinds and the likelihood new senior management will effectively reset future expectations, the firm believes Street sub-revenue growth estimates are “too high across the board” and believes an 8%-10% sub-rev growth-rate would be a fairly de-risked starting point, the analyst tells investors.