TD Cowen initiates coverage on Vertex with a Buy rating, citing strong execution and growth potential through fiscal 2028.
TD Cowen initiated coverage of Vertex, Inc. (NASDAQ:VERX) with a Buy rating and a $14 price target, highlighting the company’s leadership in indirect tax and e-invoicing software. The firm expects sentiment to improve as execution aligns with growth projections, despite the stock’s 35% year-to-date decline.
Vertex reported first-quarter 2026 revenue of $196.6 million, up 11.1% year-over-year, and adjusted EBITDA of $44.1 million, exceeding guidance. The company also acquired Brinta, an AI-driven e-invoicing startup, to expand its Latin American presence and accelerate compliance capabilities.
The initiation follows Vertex’s April Value Creation Plan, aimed at enhancing profitability and free cash flow. TD Cowen projects double-digit revenue growth through at least fiscal 2028, supported by strategic acquisitions and stable customer demand.