UPDATE: JPMorgan Starts VTEX (VTEX) at Neutral

(Updated - August 16, 2021 5:14 AM EDT)

JPMorgan analyst Sterling Auty initiates coverage on VTEX (NYSE: VTEX) with a Neutral rating and a price target of $35.00.

The analyst comments "Vtex is a cloud-native digital commerce platform for enterprise brands and retailers, allowing customers to build online stores, integrate and manage orders across channels, and create marketplaces to sell products. The company derived 94% of its revenue from Latin America in FY20, and given that LatAm is the fastest growing region for e-commerce, Vtex plans to focus on further penetrating this region before shifting its focus to targeting the rest of the world. Given that the $85B LatAm e-commerce opportunity is only penetrated at 6% of retail compared to 18% globally, Vtex is wellpositioned to continue capitalizing on this region’s secular shift to digital. We believe that Vtex will be able to grow its top-line at a ~28% CAGR from FY20-23E with the potential for significant upside depending on the pace of GMV growth and international expansion. However, the stock is up ~50% since IPO pricing and as we await a better entry point, we are initiating coverage with a Neutral rating and $35 Dec-22 price target."

For an analyst ratings summary and ratings history on VTEX click here. For more ratings news on VTEX click here.

Shares of VTEX closed at $29.28 yesterday.

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