Vertex Inc. (VERX) PT Raised to $26 at Stifel

Stifel analyst Brad Reback raised the price target on Vertex Inc. (NASDAQ: VERX) to $26.00 (from $25.00) while maintaining a Buy rating.

The analyst commented, "Vertex posted solid 3Q results as the company continues to benefit from the healthy secular demand for tax compliance tools, both domestically and internationally, as well as seeing early signs that clients are begining to re-engage with larger ERP upgrades that often pull along Vertex purchases. Organic ARR growth, excluding about $1.9M of LCR contribution, was ~14.5% and management reiterated its 40% organic Cloud growth forecast for CY21. We expect ARR growth rate to accelerate over the course of CY22 as the ERP upgrade cycle upticks (demand driver for VERX solutions) and ARR comps get much easier.

Looking forward, we believe that the positive underlying secular demand environment, coupled with strong growth within the company's emerging Cloud business, provides ample opportunity for Vertex to return to consistent mid-teens revenue growth within the next few quarters. We raise our TP to $26 as we roll forward to CY23 estimates."

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