Vertex initiated with a Buy at DA Davidson

DA Davidson analyst William Jellison initiated coverage of Vertex (VERX) with a Buy rating and $62 price target Vertex “exhibits several characteristics exemplifying sustained value-capture and per-share compounding,” such as a market with steady growth and favorable disruptive catalysts, a moat, a cost structure supportive of margin accretion, and a management team with “excellent capital allocation discipline and incentives,” the analyst tells investors. While Vertex does face strong competition in providing indirect tax automation software, none of its peers can imitate its referenceability across several key industries, which is “a critical moat,” the analyst added.