Jefferies lowered its price target on VTEX to $5.10 from $6.50 while maintaining a Buy rating, citing a more conservative long-term growth outlook and a reduced terminal multiple. The current trading price stands at $3.57, above the revised target but below the firm’s prior estimate.
The adjustment follows VTEX’s second-quarter 2026 results, which showed earnings per share of $0.05, exceeding Wall Street’s forecast of $0.04, while revenue totaled $64.38 million, slightly below the expected $64.53 million. VTEX’s CFO, Ricardo Sodré, attributed revenue headwinds to macroeconomic and mix-driven factors, particularly in Brazil and Argentina, where challenging conditions have delayed top-line recovery.
Jefferies’ revised estimates assume no growth in the core business-to-consumer segment over the next five years, reflecting broader concerns over competitive pressures and regional economic headwinds. The firm’s new target implies a potential upside of approximately 43% from current levels, though it remains below earlier projections.
InvestingPro’s fair value estimate for VTEX stands at $4.39, while Itau BBA reduced its target to $4.50 from $5.00, downgrading the stock to Market Perform. VTEX’s gross profit margins remain robust at 79%, supported by a 79% year-over-year increase in free cash flow and a 62% rise in non-GAAP operating income. Operating margins in the low-20s are described by Sodré as sustainable, with B2B, international operations, AI, and advertising identified as key growth drivers beyond the core B2C business.
