Stock Price & Analysis

Based on the analysis of recent analyst downgrades and mixed market sentiment, VERX stock is currently undervalued but faces near-term challenges. It may be a good buy for long-term investors given its strong revenue and EBITDA performance, despite technical indicators showing a downtrend.

The predicted price for VERX stock in 2025 is $46. This forecast is based on the average of analyst price targets, which have been adjusted downward due to mixed Q4 results and cautious guidance for 2025.

The S1 support level for VERX Stock is $33.1 ,The R1 resistant level for VERX Stock is $36.39.

As of the end of day on 2025-03-26, the price of VERX Stock was $35.25.

The target price for VERX Stock according to analyst rating is 49.45, with the highest price target at 61.00 and the lowest at 31.00. Analysts have a Moderate Buy rating on VERX Stock overall.

The market cap of VERX is $5.6B.

Analysis and Insights

VERX appears overvalued based on several factors:

1. Analyst Downgrades: Multiple analysts have lowered price targets, with BMO Capital reducing from $56 to $41 and Jefferies from $62 to $48, citing mixed Q4 results and cautious Q1 guidance.

2. High Valuation Metrics: VERX's P/E ratio is 197.59 for Q3 2024, EV/EBITDA of 66.41, P/S of 23.18, and P/B of 9.54, all indicating a premium valuation.

3. Bearish Technical Indicators: The stock is trading below its 20, 50, and 200-day moving averages, with a negative MACD and RSI of 39.11, suggesting bearish momentum.

4. Mixed Earnings and Guidance: Despite strong revenue and EBITDA, Q1 guidance is weaker than expected, causing investor concern and a sell-off.

Conclusion

VERX's high valuation, analyst downgrades, and bearish technical indicators suggest it may be overvalued. Investors should exercise caution and consider waiting for a correction or improved outlook.

Vertex, Inc. is a provider of enterprise tax technology solutions. The Company operates as a solution provider of state, local and value-added tax calculation, compliance and analytics, offering software products which are sold through software license and software as a service (cloud) subscription. The Company also provides implementation and training services in connection with its software license and cloud subscriptions, transaction tax returns outsourcing, and other tax-related services. It sells to customers located throughout the United States of America and internationally. It offers a range of solutions, including tax determination, compliance and reporting, tax data management, document management, analytics and insights, pre-built integrations, industry-specific solutions, implementation services, and managed services. The Company offers various managed services, including indirect tax return preparation, filing and tax payment and notice management.

The predicted price for VERX stock by 2030 is $55. This forecast is based on the company's potential for revenue growth through e-invoicing and international expansion. Analysts expect VERX to maintain its strong position in the tax software market.

VERX has a total of 1500 employees.