Vertex Stock Rises Following Analyst Upgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy VERX?
Source: Fool
- Stock Surge: Vertex shares rose nearly 6% on Thursday, closing at $12.79, indicating strong investor optimism regarding the company's future performance.
- Price Target Increase: Goldman Sachs analyst Adam Hotchkiss reiterated a buy rating on Vertex, maintaining a price target of $23, which is nearly 80% higher than the recent closing price, reflecting confidence in the company's growth potential.
- Profit Growth Forecast: Hotchkiss predicts that Vertex's net income will increase this year compared to last, suggesting that the company's various opportunities in fintech, including e-invoicing services, could yield significant returns.
- Revenue Improvement: The analyst noted that Vertex's revenue for 2025 is projected to rise by 12% over the previous year, demonstrating the company's strong performance during periods of economic growth, making it a compelling investment opportunity.
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Analyst Views on VERX
Wall Street analysts forecast VERX stock price to rise
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 12.030
Low
22.00
Averages
27.42
High
37.00
Current: 12.030
Low
22.00
Averages
27.42
High
37.00
About VERX
Vertex, Inc. is a global provider of indirect tax solutions. The Company and its subsidiaries operate as solutions providers of state, local and value-added tax calculation, compliance, and analytics, offering software products that are sold through software licenses and software-as-a-service (cloud) subscriptions. It also provides implementation and training services in connection with its software license and cloud subscriptions, transaction tax returns outsourcing, and other tax-related services. Its software includes tax determination, compliance and reporting, tax data management and document management tools, analytics and insights, as well as pre-built integrations with business applications. Its tax-determination solutions enable real-time calculation of indirect taxes and applicable fees for sale and purchase transactions. Its compliance and reporting solutions enable the automation of signature-ready returns and remittance of indirect tax to appropriate jurisdictions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Vertex Stock Rises Following Analyst Upgrade
- Stock Surge: Vertex shares rose nearly 6% on Thursday, closing at $12.79, indicating strong investor optimism regarding the company's future performance.
- Price Target Increase: Goldman Sachs analyst Adam Hotchkiss reiterated a buy rating on Vertex, maintaining a price target of $23, which is nearly 80% higher than the recent closing price, reflecting confidence in the company's growth potential.
- Profit Growth Forecast: Hotchkiss predicts that Vertex's net income will increase this year compared to last, suggesting that the company's various opportunities in fintech, including e-invoicing services, could yield significant returns.
- Revenue Improvement: The analyst noted that Vertex's revenue for 2025 is projected to rise by 12% over the previous year, demonstrating the company's strong performance during periods of economic growth, making it a compelling investment opportunity.
See More
ETF Analysis: FTLS Implies 16.68% Upside Potential
- FTLS Target Price Analysis: According to ETF Channel, the implied analyst target price for the First Trust Long/Short Equity ETF (FTLS) is $82.62 per unit, while its recent trading price is $70.81, indicating a 16.68% upside potential that reflects market optimism towards this ETF.
- HUBS Price Potential: HubSpot Inc (HUBS) is currently trading at $228.95, with an analyst target price of $524.88, suggesting a 129.25% upside, showcasing strong confidence from analysts regarding its future growth.
- VERX Growth Expectations: Vertex Inc (VERX) has a current share price of $12.37, while analysts project a target price of $27.57, indicating a potential upside of 122.89%, reflecting a positive outlook on its business prospects.
- NCNO Market Outlook: nCino Inc (NCNO) is trading at $15.85, with an analyst target price of $33.93, which implies a 114.09% upside potential, demonstrating analysts' positive expectations for its future performance.
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Vertex, Inc. Q4 2025 Earnings Call Insights
- Stable Financial Performance: Vertex reported Q4 2025 revenue of $194.7 million, meeting expectations, while adjusted EBITDA reached $42.5 million, exceeding the high end of guidance, reflecting strong performance with a blue-chip customer base, including over 60% of Fortune 500 companies.
- Customer Attrition Challenges: Despite a 9.1% revenue increase, 2025 faced heightened customer attrition, particularly among smaller clients, driven by uncontrollable factors like M&A and bankruptcies, impacting retention metrics, which management is addressing with strategic initiatives.
- AI Strategic Transformation: CEO Chris Young emphasized the goal of transforming Vertex into an AI-first company, anticipating that new offerings like smart categorization will enhance internal efficiency and customer service capabilities, thereby driving future revenue growth.
- Optimistic 2026 Outlook: CFO John Schwab provided guidance for 2026 revenues of $823.5 million to $831.5 million, with cloud revenue expected to grow by 25%, and adjusted EBITDA targets of $188 million to $192 million, indicating strong confidence in future growth prospects.
See More
Vertex (VERX) Q4 2025 Earnings Call Transcript
See More
Vertex Reports Q4 2025 Earnings with Revenue Growth
- Earnings Highlights: Vertex reported a non-GAAP EPS of $0.17 for Q4 2025, with revenue reaching $194.7 million, reflecting a 9.1% year-over-year growth, indicating the company's stable growth potential in the market.
- Software Subscription Revenue Growth: Software subscription revenues totaled $166.2 million, up 8.9% year-over-year, demonstrating the company's ongoing appeal and expansion of its customer base in the software services sector.
- Significant Cloud Revenue Increase: Cloud revenues reached $94.6 million, a 23.0% increase year-over-year, highlighting the company's strong performance and rising demand in the cloud computing space, further solidifying its market position.
- Annual Recurring Revenue: The Annual Recurring Revenue (ARR) stood at $671.0 million, up 11.3%, showcasing the company's solid performance in customer retention and revenue stability, despite a slight decline in Net Revenue Retention to 105%.
See More
Vertex to Announce Q4 Earnings on February 11th
- Earnings Announcement: Vertex (VERX) is set to release its Q4 earnings on February 11th before market open, with a consensus EPS estimate of $0.16, reflecting a 6.7% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $194.33 million, representing an 8.9% year-over-year increase, suggesting ongoing improvements in market demand and sales, which could further bolster investor confidence.
- Performance Record: Over the past two years, Vertex has beaten EPS and revenue estimates 100% of the time, showcasing exceptional financial management and market adaptability, thereby enhancing its reputation among investors.
- Analyst Rating Changes: Piper Sandler has downgraded Vertex, yet the company's consistent performance record may attract long-term investors, particularly in the current market environment.
See More
Vertex Stock Rises Following Analyst Upgrade
- Stock Surge: Vertex shares rose nearly 6% on Thursday, closing at $12.79, indicating strong investor optimism regarding the company's future performance.
- Price Target Increase: Goldman Sachs analyst Adam Hotchkiss reiterated a buy rating on Vertex, maintaining a price target of $23, which is nearly 80% higher than the recent closing price, reflecting confidence in the company's growth potential.
- Profit Growth Forecast: Hotchkiss predicts that Vertex's net income will increase this year compared to last, suggesting that the company's various opportunities in fintech, including e-invoicing services, could yield significant returns.
- Revenue Improvement: The analyst noted that Vertex's revenue for 2025 is projected to rise by 12% over the previous year, demonstrating the company's strong performance during periods of economic growth, making it a compelling investment opportunity.
See More
ETF Analysis: FTLS Implies 16.68% Upside Potential
- FTLS Target Price Analysis: According to ETF Channel, the implied analyst target price for the First Trust Long/Short Equity ETF (FTLS) is $82.62 per unit, while its recent trading price is $70.81, indicating a 16.68% upside potential that reflects market optimism towards this ETF.
- HUBS Price Potential: HubSpot Inc (HUBS) is currently trading at $228.95, with an analyst target price of $524.88, suggesting a 129.25% upside, showcasing strong confidence from analysts regarding its future growth.
- VERX Growth Expectations: Vertex Inc (VERX) has a current share price of $12.37, while analysts project a target price of $27.57, indicating a potential upside of 122.89%, reflecting a positive outlook on its business prospects.
- NCNO Market Outlook: nCino Inc (NCNO) is trading at $15.85, with an analyst target price of $33.93, which implies a 114.09% upside potential, demonstrating analysts' positive expectations for its future performance.
See More
Vertex, Inc. Q4 2025 Earnings Call Insights
- Stable Financial Performance: Vertex reported Q4 2025 revenue of $194.7 million, meeting expectations, while adjusted EBITDA reached $42.5 million, exceeding the high end of guidance, reflecting strong performance with a blue-chip customer base, including over 60% of Fortune 500 companies.
- Customer Attrition Challenges: Despite a 9.1% revenue increase, 2025 faced heightened customer attrition, particularly among smaller clients, driven by uncontrollable factors like M&A and bankruptcies, impacting retention metrics, which management is addressing with strategic initiatives.
- AI Strategic Transformation: CEO Chris Young emphasized the goal of transforming Vertex into an AI-first company, anticipating that new offerings like smart categorization will enhance internal efficiency and customer service capabilities, thereby driving future revenue growth.
- Optimistic 2026 Outlook: CFO John Schwab provided guidance for 2026 revenues of $823.5 million to $831.5 million, with cloud revenue expected to grow by 25%, and adjusted EBITDA targets of $188 million to $192 million, indicating strong confidence in future growth prospects.
See More
Vertex (VERX) Q4 2025 Earnings Call Transcript
See More
Vertex Reports Q4 2025 Earnings with Revenue Growth
- Earnings Highlights: Vertex reported a non-GAAP EPS of $0.17 for Q4 2025, with revenue reaching $194.7 million, reflecting a 9.1% year-over-year growth, indicating the company's stable growth potential in the market.
- Software Subscription Revenue Growth: Software subscription revenues totaled $166.2 million, up 8.9% year-over-year, demonstrating the company's ongoing appeal and expansion of its customer base in the software services sector.
- Significant Cloud Revenue Increase: Cloud revenues reached $94.6 million, a 23.0% increase year-over-year, highlighting the company's strong performance and rising demand in the cloud computing space, further solidifying its market position.
- Annual Recurring Revenue: The Annual Recurring Revenue (ARR) stood at $671.0 million, up 11.3%, showcasing the company's solid performance in customer retention and revenue stability, despite a slight decline in Net Revenue Retention to 105%.
See More
Vertex to Announce Q4 Earnings on February 11th
- Earnings Announcement: Vertex (VERX) is set to release its Q4 earnings on February 11th before market open, with a consensus EPS estimate of $0.16, reflecting a 6.7% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $194.33 million, representing an 8.9% year-over-year increase, suggesting ongoing improvements in market demand and sales, which could further bolster investor confidence.
- Performance Record: Over the past two years, Vertex has beaten EPS and revenue estimates 100% of the time, showcasing exceptional financial management and market adaptability, thereby enhancing its reputation among investors.
- Analyst Rating Changes: Piper Sandler has downgraded Vertex, yet the company's consistent performance record may attract long-term investors, particularly in the current market environment.
See More
