Vtex price target raised to $10 from $9 at Piper Sandler

Piper Sandler raised the firm’s price target on Vtex to $10 from $9 and keeps an Overweight rating on the shares. The firm notes Vtex beat Q4 expectations as revenue grew 25% year-over-year on an FX-neutral basis for the fourth consecutive quarter of accelerating FXN growth. For FY24, the company guided to 18%-22% FXN growth and mid-to-high single-digit operating and free cash flow margins. Piper would note this reflects the impact of recent devaluation in Argentinian currency, which is anticipated to have a mid-single-digit percentage headwind to USD growth and mid-single-digit percentage operating margin impact in 2024. That said, the guide affirms the company is on a path towards sustainable growth with profitability expansion, the firm argues.