Analyst Naved Khan from B. Riley has upgraded Yext (YEXT, Financial) to a Buy rating, raising the price target from $7 to $10. This decision follows notable improvements in the company's key performance indicators on a quarterly basis. The analyst notes that Yext has delivered better-than-expected first-quarter results and offers a promising outlook.
Yext's consistent track record of strong execution is evident in its significant EBITDA margin growth over the past two years and successful strategic acquisitions. Additionally, the early success of Scout in its closed beta is viewed as a positive indicator for enhancing customer retention and driving annual recurring revenue once fully launched.
Overall, the stock's risk/reward profile appears favorable at this juncture, according to Khan's research analysis.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Yext Inc (YEXT, Financial) is $8.22 with a high estimate of $10.00 and a low estimate of $7.00. The average target implies an upside of 20.53% from the current price of $6.82. More detailed estimate data can be found on the Yext Inc (YEXT) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Yext Inc's (YEXT, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Yext Inc (YEXT, Financial) in one year is $6.92, suggesting a upside of 1.47% from the current price of $6.82. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Yext Inc (YEXT) Summary page.
YEXT Key Business Developments
Release Date: March 05, 2025
- Gross ARR Retention: Increased to the high-80s.
- Net Retention Rate: Increased across both direct and reseller channels.
- EBITDA Margins: Exceeded 20%.
- EBITDA Outlook for Fiscal Year '26: Projected to be over $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Yext Inc (YEXT, Financial) has successfully integrated Hearsay, generating expected go-to-market and cost synergies.
- Product innovation is accelerating, with the launch of Yext Scout receiving enthusiastic customer responses.
- Gross and net retention rates are increasing, with gross ARR retention in the high-80s.
- EBITDA margins are over 20%, with a strong outlook for over $100 million in EBITDA for fiscal year 2026.
- The company is seeing momentum in key verticals like healthcare and financial services, driven by industry-specific factors.
Negative Points
- The macroeconomic environment remains unchanged, with spending scrutiny persisting.
- Sequential ARR decline was noted, partly due to FX impacts and downgrades rather than logo churn.
- The company is still facing challenges related to store closures and reduced number of licenses.
- Despite product developments, the demand environment remains challenging, with no significant tailwinds.
- Yext Inc (YEXT) is not providing a full-year revenue guide, reflecting uncertainty in the revenue picture.
