Analyst Expectations For Vertex's Future

Ratings for Vertex VERX were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $51.3, a high estimate of $61.00, and a low estimate of $31.00. A 14.64% drop is evident in the current average compared to the previous average price target of $60.10.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Vertex by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|------------------------|---------------|-----------------|--------------------|--------------------| |Stan Zlotsky |Morgan Stanley |Lowers |Overweight | $55.00|$60.00 | |William Jellison |DA Davidson |Lowers |Buy | $50.00|$55.00 | |Patrick Walravens |Citizens Capital Markets|Maintains |Market Outperform| $61.00|$61.00 | |Stan Zlotsky |Morgan Stanley |Raises |Overweight | $60.00|$57.00 | |Joshua Reilly |Needham |Maintains |Buy | $60.00|$60.00 | |Adam Hotchkiss |Goldman Sachs |Lowers |Buy | $48.00|$64.00 | |Samad Samana |Jefferies |Lowers |Buy | $48.00|$62.00 | |William Jellison |DA Davidson |Lowers |Buy | $55.00|$62.00 | |Rob Oliver |Baird |Lowers |Outperform | $45.00|$62.00 | |Brad Reback |Stifel |Lowers |Hold | $31.00|$58.00 |

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Vertex. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Vertex compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Vertex's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Vertex's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Vertex analyst ratings.

Delving into Vertex's Background

Vertex Inc is a provider of tax technology and services. Its software, content, and services help customers stay in compliance with indirect taxes that occur in taxing jurisdictions all over the world. Vertex provides cloud-based and on-premise solutions to specific industries for every line of tax, including income, sales, consumer use, value-added, and payroll. The company offers solutions such as tax determination, Tax Data Management, document management, and compliance and reporting among others. The company derives revenue from software subscriptions.

Vertex's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Vertex displayed positive results in 3M. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 15.2%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Vertex's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -37.99%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Vertex's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -30.93%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Vertex's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -5.75%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Vertex's debt-to-equity ratio stands notably higher than the industry average, reaching 1.96. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.