Vertex, Inc. (VERX) Stock Forecast & Price Target

Vertex Inc. has demonstrated robust performance in its cloud revenue, reporting approximately $86 million, which marks a 30% year-over-year increase, with an organic growth rate of 26%. The company's subscription revenue is expected to grow by 14% for the year, supporting its long-term financial stability despite a slight adjustment from previous estimates. Additionally, there is an upside potential, as Vertex could achieve around 5% top-line outperformance, potentially leading to significant multiple expansion.

Vertex Inc. has revised its full-year revenue guidance downward by approximately $12 million to a midpoint of $752 million, indicating a projected growth of around 12.8% for 2025, which reflects declining entitlement growth and challenges in the SAP ecosystem. The company's 3Q revenue growth forecast of 12.5% year-over-year is approximately 2.5 percentage points below consensus estimates, further suggesting a 4Q growth decline to about 11.5%. Additionally, the 2Q results were weaker than anticipated, attributed to reduced usage growth and a slowdown within the SAP ecosystem, leading to an overall downgraded outlook for the year.