TD Cowen Rates Vertex (VERX) A Buy; Sees Sentiment Improving On Execution

With strong upside potential, Vertex, Inc. (NASDAQ:VERX) ranks among the overlooked tech stocks to invest in now. A bullish new analyst call follows a first quarter that beat guidance and a strategic acquisition aimed at expanding the company's global reach.

On June 29, 2026, TD Cowen initiated coverage of Vertex, Inc. (NASDAQ:VERX) with a "Buy" rating and a $14 price target. The firm called Vertex a leading global indirect tax and e-invoicing software vendor, pointing to reasonable consensus expectations and a depressed valuation following the stock's recent underperformance as reasons sentiment could improve alongside execution. TD Cowen said it expects Vertex to sustain double-digit revenue growth through at least fiscal 2028. The stock is down over 35% year-to-date.

That initiation followed first-quarter 2026 results Vertex, Inc. (NASDAQ:VERX) reported in May, with total revenue of $196.6 million, up 11.1% year-over-year, and adjusted EBITDA of $44.1 million, above the high end of guidance. CEO Chris Young said the quarter showed stability across customer demand and retention despite a mixed macro environment.

During the quarter, Vertex, Inc. (NASDAQ:VERX) acquired Brinta, an AI-first e-invoicing startup in Latin America, which Young said will speed up country coverage in the region with AI-native compliance architecture. Young also pointed to the company's April Value Creation Plan, designed to boost profitability and free cash flow.

Looking ahead, Vertex, Inc. (NASDAQ:VERX) guided for full-year 2026 revenue of $823.5 million to $831.5 million and cloud revenue growth of 25%. CFO John Schwab said cost actions from the Value Creation Plan are expected to save $60 million to $70 million annually beginning in 2027.

Vertex, Inc. (NASDAQ:VERX), a leading provider of indirect tax and e-invoicing solutions, uses AI-powered offerings to accelerate enterprise revenue growth, profitability, and operational efficiency in global markets.

While we acknowledge the potential of VERX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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