Jefferies reduced its price target on VTEX to $5.10 from $6.50, citing a more conservative long-term growth outlook and a lower terminal multiple. The investment bank maintained its buy rating on the stock, which was trading at $3.57 at the time of the report.
The revision reflects revised estimates that do not project growth in VTEX’s core B2C business over the next five years. Despite the downgrade, Jefferies highlighted B2B operations, international expansion, artificial intelligence, and advertising as increasingly relevant growth drivers for the company. Jefferies’ fair value estimate for VTEX stood at $4.39, according to InvestingPro data.
VTEX reported second-quarter 2026 earnings per share of $0.05, beating Wall Street’s consensus estimate of $0.04. Revenue totaled $64.38 million, slightly below the expected $64.53 million. The company’s CFO, Ricardo Sodré, noted that revenue headwinds stem from macroeconomic pressures and business mix factors, while operating margins in the low 20% range are sustainable.
Profitability metrics showed improvement, with free cash flow rising 79% and non-GAAP operating income up 62% year-over-year. Gross margins reached 79%, and the stock’s PEG ratio was reported at 0.15.
Separately, Itaú BBA downgraded VTEX from Outperform to Market Perform and lowered its price target to $4.50 from $5.00. The downgrade was attributed to weaker growth prospects amid heightened competition and challenging macroeconomic conditions in Brazil and Argentina.
