Cesar Medina, an analyst from Morgan Stanley, maintained the Buy rating on VTEX (VTEX – Research Report). The associated price target is $8.00.
Cesar Medina has given his Buy rating due to a combination of factors that highlight VTEX’s potential for growth despite some current challenges. The company’s guidance suggests a gradual recovery in Argentina and continued international expansion, which are expected to support revenue growth in the coming quarters. Additionally, the ramp-up of new stores is anticipated to accelerate growth, with a forecasted subscription revenue increase of 13-15% in the first quarter of 2025 and 14-17% for the full year.
Despite a slight revenue miss and weaker guidance attributed to macroeconomic challenges in Brazil, which accounts for a significant portion of VTEX’s revenue, the company’s cost discipline and operating leverage have maintained a stable income from operations. The continued addition of international brands in Europe and the US further strengthens VTEX’s position in the market, making it a promising investment opportunity according to Medina.
According to TipRanks, Medina is ranked #8049 out of 9385 analysts.