2023-09-18 15:53:48 ET
Shares of tax management software provider Vertex ( NASDAQ: VERX ) rose 2.7% on Monday after Morgan Stanley resumed its coverage of the company with an Overweight rating, stating VERX is positioned for accelerating revenue growth and FCF margin expansion.
Shares of VERX have climbed over 45% YTD.
Morgan Stanley believes Vertex is at an inflection point that will see its revenue jump from low-to-mid teens to mid-to-high teens year-over-year and return free cash flow margin from 1% in 2022 to high-teens by 2025.
According to the brokerage, the three key drivers the company needs for growth inflection include a new co-selling partnership with SAP, the build out of its in-country sales teams in Europe, and its cloud revenue constituting most of its subscription revenue by 2024.
Morgan Stanley's Overweight rating compares with average Wall Street rating of Buy and SA Quant rating of Hold.
More on Vertex
- Seeking Alpha’s Quant Rating on Vertex
- Historical earnings data for Vertex
- Financial information for Vertex
- Vertex, Inc. 2023 Q2 - Results - Earnings Call Presentation
- Vertex, Inc. ( VERX ) Q2 2023 Earnings Call Transcript
- Vertex: Seizing The Opportunity In The Tax Compliance Software Market
- Vertex: Share Price Weakness Represents Another Buy Point
- Vertex Non-GAAP EPS of $0.08 in-line, revenue of $139.7M beats by $3.62M
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Morgan Stanley resumes coverage of Vertex with Overweight rating, shares rise