On Tuesday, JPMorgan raised its price target on VTEX (NYSE:VTEX) to $7.50 from $6.50, while maintaining an Overweight rating. Analyst Noah Herman cited higher margin expectations, which were driven by the company’s AI-driven gains in support costs, as the reason for this adjustment.
A high-quality exterior shot of a business complex with several enterprise brands and retailers.
In Q1 2025, VTEX achieved margin expansion, which was largely driven by AI-powered automation in customer support. This use of AI led to an improvement in service quality while reducing support-related costs. This efficiency gain was a key contributor to the 3.7 percentage points margin increase year-over-year in gross profit, which reached $41 million and marked 22% growth in FX Neutral.
VTEX is now building a future where its intelligent agents will evolve into digital workers, autonomously managing core workflows across service, demand generation, and merchandising for customers. VTEX also has a partnership with Accenture to modernize US enterprises’ e-commerce capabilities.
VTEX (NYSE:VTEX) provides SaaS digital commerce platform for enterprise brands and retailers. It offers the VTEX platform that enables customers to execute commerce strategy, such as building online stores, and integrating & managing orders across channels.
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Disclosure: None. This article is originally published at Insider Monkey.
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