Why Does Wall Street Has a Mixed Opinion About Vertex, Inc. (VERX)

Vertex, Inc. (NASDAQ:VERX) is one of the Tech Stocks to Buy with the Highest Upside Potential. Wall Street has a mixed opinion about Vertex, Inc. (NASDAQ:VERX) after the company released results for the fiscal second quarter of 2025 on August 6. The company delivered quarterly revenue of $184.56 million, up 14.56% year-over-year but missing the consensus by $38,230. Moreover, the EPS of $0.15 slightly topped the consensus by $0.01.

On August 8, Bradley Sills from Bank of America Securities reduced the firm’s price target on Vertex, Inc. (NASDAQ:VERX) from $42 to $34, while reiterating a Hold rating. Similarly, on August 12, Gil Luria from D.A. Davidson also reiterated a Hold rating with an associated price target of $29.

Bradley Sills of BoFA noted that he lowered the price target due to a weaker economic outlook and specific issues in the sales tax segment. He highlighted that Vertex, Inc. (NASDAQ:VERX) remains strong in the enterprise market and benefits from the shift to cloud services and growing e-invoicing adoption. However, the net retention rates fell a bit in the recent quarter as contract growth with large clients slowed down.

Management has reduced the full-year revenue outlook from a range of $760 million to $768 million to $750.0 million to $754.0 million.

Despite this, on August 15, the Citizens JMP analyst Patrick Walravens reiterated a Buy rating on Vertex, Inc. (NASDAQ:VERX) with a price target of $50.

Vertex, Inc. (NASDAQ:VERX) provides software solutions for indirect tax calculation, compliance, and analytics. Their products help businesses automate tax determination and reporting through licenses and cloud subscriptions.

While we acknowledge the potential of VERX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VERX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.