Strategic Google Pay Partnership Strengthens VTEX's International Expansion Prospects, Says Analyst

DA Davidson analyst Franco Granda reiterated a Buy rating on the shares of VTEX VTEX, raising the price target to $5.50 from $5.00.

The analyst believes VTEX is well set to deliver a solid 2H, pending any implosion of the economy. 

Granda applauds the company's momentum across new store growth, which has accelerated QTD, creating upside potential to 2H23 estimates. 

In addition, positive macroeconomic indicators from Brazil and improving conditions in other key Latin American countries bode well for increased activity. 

Given these factors and the expectation of sustainable profitability by year-end, the analyst sees a solid value proposition as the company attempts to expand internationally.

Granda applauds VTEX's strategic partnership that enabled over three thousand global e-commerce companies to incorporate the "Pay with Google Pay" button as a payment option.

These apart, the analyst notes that VTEX shares still trade at a 50% discount to the comp group, despite a 21% rise in shares YTD. 

Price Action: VTEX shares are trading lower by 2.95% to $4.60 on the last check Friday.