UBS Downgrades VTEX to Buy, PT Cut to $8 from $10

UBS Downgrades VTEX to Buy, PT Cut to $8 from $10

UBS Group AG has revised its price target and rating for VTEX (NYSE: VTEX), downgrading the company from a "buy" to a "buy" rating while cutting the price target from $10 to $8. This move follows a series of changes in analyst ratings and price objectives for VTEX, reflecting the company's recent performance and market conditions.

VTEX's share price hit a new 52-week low during trading on August 20, 2025, trading as low as $3.93 before closing at $4.08. The company has faced a mix of analyst ratings, with two analysts rating it as a "buy" and two as a "hold," resulting in an average rating of "Moderate Buy" with a consensus price target of $8.33 [1].

UBS's decision to cut its price target for VTEX comes amidst a broader shift in analyst sentiment. Jefferies Financial Group initiated coverage on VTEX on May 22, 2025, issuing a "hold" rating and a $7.30 price objective. Citigroup initiated coverage on June 23, 2025, with a "buy" rating and a $10.00 price objective. UBS Group decreased its price objective from $11.00 to $10.00 on June 13, 2025, while JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $6.00 price objective on August 8, 2025. Wall Street Zen raised its rating from "hold" to "buy" on August 20, 2025 [1].

The company reported earnings of $0.02 per share for the quarter ending August 7, 2025, meeting the consensus estimate of $0.02. VTEX has set its FY 2025 guidance at EPS. Analysts expect the company to post 0.08 EPS for the current fiscal year [1].

Institutional investors have also shown interest in VTEX, with several hedge funds and other institutional investors modifying their holdings. Softbank Group CORP., Millennium Management LLC, Nuveen LLC, Polar Capital Holdings Plc, and Nuveen Asset Management LLC have all increased their stakes in VTEX during the fourth quarter of 2024 [1].

UBS's latest move underscores the bank's commitment to providing insightful analysis and strategic advice to its clients. The bank's neutral rating and decreased price target reflect a balanced view of VTEX's prospects, acknowledging both the company's growth potential and the risks associated with the digital commerce sector.

References:
[1] https://www.marketbeat.com/instant-alerts/vtex-nysevtex-sets-new-1-year-low-heres-why-2025-08-20/
[2] https://www.ainvest.com/news/ubs-raises-pt-23-21-maintains-neutral-rating-2508/