Update shared on22 Aug 2025
Fair value Decreased 5.01%Analysts have reduced their price target for VTEX from $8.87 to $8.42 amid weaker-than-expected Q2 growth, ongoing macroeconomic headwinds in key Latin American markets, and lowered 2025 guidance, which has increased near-term caution despite continued confidence in long-term sector drivers.
Analyst Commentary
- Weak growth in Q2, especially due to deteriorating conditions in Argentina and Brazil, prompting reduced growth outlook.
- Lowered guidance for 2025 has decreased visibility for growth into 2026.
- More cautious stance adopted as softer growth trends emerge and macro headwinds persist in key Latin American markets.
- Bullish analysts highlight robust structural drivers in the Brazil software sector and believe current valuations are attractive for long-term investors.
- AI initiatives expected to generate cost savings over time, supporting the long-term growth algorithm despite near-term challenges.
What's in the News
- VTEX launched major enterprise-grade product expansions focused on B2B complexity, omnichannel experiences, and an agentic AI workforce, earning top recognition for TCO and marketplace capabilities.
- The company introduced multiple advanced B2B and omnichannel features, such as personalized catalogs/pricing, advanced buyer management, AI-driven search and recommendations, unified multi-channel inventory, and fully autonomous AI agents for customer service, storefront edits, and data insights.
- VTEX issued Q3 and FY2025 guidance: FX-neutral subscription revenue growth of 6–9% for Q3 ($57.5–$59 million) and 9–12% for FY2025 ($233–$239 million).
- The Board authorized a $40 million share repurchase program valid through July 31, 2026; as of June 30, 2025, 5.33 million shares (2.89%) had been repurchased for $30.38 million.
- VTEX was added to multiple major Russell indexes, including the Russell 2000, 2500, and 3000 Growth, Small Cap, and Defensive indexes.
Valuation Changes
Summary of Valuation Changes for VTEX
- The Consensus Analyst Price Target has fallen from $8.87 to $8.42.
- The Future P/E for VTEX has fallen from 52.24x to 49.56x.
- The Discount Rate for VTEX remained effectively unchanged, moving only marginally from 8.75% to 8.70%.
Disclaimer
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