JPMorgan has revised its price target for Vtex (VTEX, Financial), reducing it from $9 to $6.50 while maintaining an Overweight rating on the company's shares. This adjustment reflects a tempered outlook on Vtex's growth trajectory, especially concerning its subscription revenue growth projections.
The firm remains optimistic about Vtex's potential to expand its market penetration beyond Brazil, leveraging its robust and adaptable product offerings. However, JPMorgan's revised expectations are influenced by the company's modest growth forecast for 2025, which anticipates a 14% to 17% increase in subscription revenue, excluding the impact of currency fluctuations.
This slower growth forecast has led JPMorgan to adjust its financial projections, although it still sees significant long-term value in Vtex's strong product lineup. Investors are advised to note that while the company holds promise, the realization of its value may unfold more gradually than previously anticipated.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Vtex (VTEX, Financial) is $9.75 with a high estimate of $12.00 and a low estimate of $7.00. The average target implies an upside of 98.57% from the current price of $4.91. More detailed estimate data can be found on the Vtex (VTEX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Vtex's (VTEX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vtex (VTEX, Financial) in one year is $8.38, suggesting a upside of 70.67% from the current price of $4.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vtex (VTEX) Summary page.
