DA Davidson has reduced its price target for Vertex Inc. (NASDAQ:VERX) to $13.00 from $23.00 and left its recommendation at Neutral. The revised target sits close to Vertex's most recent trading level of $12.55, while InvestingPro data cited in coverage indicates the shares may still be trading below Fair Value estimates.
The update comes after Vertex released its fourth-quarter 2025 results, which DA Davidson characterized as "largely in-line with consensus expectations." The firm noted company leadership changes and strategic priorities under new CEO Christopher Young, who is concentrating on accelerating product innovation and bolstering customer retention through enhanced support services.
DA Davidson singled out Vertex's e-invoicing business as a "bright spot," acknowledging positive developments in that segment. Nevertheless, the research house said the case for materially higher organic growth in the near term is weak, stating that "more meaningful upside to organic growth lacks near term catalysts." That view was a principal factor in the sizeable downward revision to the price target.
Vertex's reported fourth-quarter 2025 results showed an earnings per share of $0.17, beating the consensus forecast of $0.1633. Revenue for the period came in at $194.7 million, narrowly exceeding expectations of $194.32 million. Those results prompted several other research shops to adjust their outlooks for the company.
Citizens trimmed its price objective on Vertex to $25, citing concerns over the pace of product innovation. Jefferies moved to downgrade Vertex from Buy to Hold and lowered its price target to $16, describing the quarter as "just ok" and noting the company is navigating a CEO transition. Needham cut its target to $20 but kept a Buy rating, attributing the change to slower growth and revenue headwinds the company highlighted.
Taken together, the analyst moves reflect a mixture of cautious positioning and recognition of pockets of strength within Vertex's business. DA Davidson's tighter target and continued Neutral stance underline the firm's view that while certain segments and management initiatives are promising, broader upside remains constrained absent clearer growth catalysts.
Summary
DA Davidson lowered Vertex's price target to $13 from $23 while maintaining a Neutral rating after Q4 2025 results. The firm noted constructive signs in e-invoicing and management's focus on product and retention, but concluded that substantial organic growth upside is unlikely in the near term. Other analysts also adjusted targets and ratings in response to the quarter.