Vtex initiated with a Neutral at Citi

Citi initiated coverage of Vtex (VTEX) with a Neutral rating and $6.70 price target Following the 2020-21 overinvestment hangover, the company “sobered up” in 2022-23 by holding back on operating expenditure and saw its revenue growth pick up, which was followed by sentiment and the stock price, the analyst tells investors in a research note. Citi adds however that it now sees a gloomier short-term, with downward revenue revisions on FX headwinds, marginal FX-neutral growth deceleration, and higher rates for longer in Brazil.