DA Davidson maintains YEXT stock Neutral with $7.50 target

Published 06/03/2025, 17:40
DA Davidson maintains YEXT stock Neutral with $7.50 target

On Thursday, DA Davidson reiterated a Neutral rating on YEXT Inc. (NYSE:YEXT) with a consistent price target of $7.50. The firm’s analysis followed YEXT’s fourth-quarter fiscal year 2025 results, which slightly exceeded revenue expectations and aligned with the adjusted EBITDA projections. According to InvestingPro data, YEXT maintains impressive gross profit margins of 77.11% and has shown steady revenue growth of 4.11% over the last twelve months. These results were in line with the company’s pre-announcement on February 10, which indicated that the fourth-quarter figures would meet or surpass its guidance.

The report from DA Davidson acknowledged the solid performance of YEXT in the final quarter, noting that the results were a marginal improvement on revenue and matched the adjusted EBITDA expectations. This performance comes after YEXT’s previous announcement that their fourth-quarter outcomes would be at least in line with their forecasts.

Looking ahead, the first quarter of fiscal year 2026 presents a mixed outlook for YEXT. The company anticipates a sequential decline in both revenues and adjusted EBITDA. This expected downturn is attributed to several factors, including a lesser number of days in the quarter, the leap year comparison, and foreign exchange headwinds. InvestingPro analysis reveals that while the company isn’t currently profitable, analysts expect positive earnings this fiscal year, with an EPS forecast of $0.54 for FY2026. InvestingPro subscribers have access to 7 additional key insights about YEXT’s financial health and growth prospects.

Despite the anticipated dip in the upcoming quarter, DA Davidson suggests that the overall demand for YEXT’s services remains relatively stable. The firm’s commentary indicates that YEXT’s expanding portfolio of services is maintaining a steady level of market interest, which could be a positive sign for the company’s future performance.

In summary, while DA Davidson has kept its Neutral stance on YEXT stock, the firm recognizes the company’s solid fourth-quarter achievements and regards the demand for YEXT’s services as generally unchanged. The $7.50 price target remains in place as YEXT navigates the challenges and opportunities of the upcoming fiscal quarter. Based on InvestingPro’s comprehensive Fair Value analysis, YEXT appears undervalued at current levels. Discover detailed insights and access the full Pro Research Report, which provides an in-depth analysis of YEXT’s financial health, valuation metrics, and growth potential.

In other recent news, Yext Inc . reported its fourth-quarter earnings for fiscal year 2025, narrowly missing Wall Street’s expectations with an earnings per share (EPS) of $0.13, compared to a forecast of $0.14. The company’s revenue, however, slightly exceeded expectations, coming in at $113.1 million against the anticipated $112.77 million. This performance reflects Yext’s resilience, despite challenges in maintaining customer subscriptions, as indicated by a decline in core Annual Recurring Revenue (ARR). Additionally, Yext launched new AI-powered products, including Yext Scout, which has attracted significant customer interest. The company is optimistic about future growth, with plans to increase research and development investments to enhance product innovation. In terms of strategic moves, Yext has integrated its recent acquisition, Hearsay, which is expected to generate synergies in the market. While the company faces ongoing macroeconomic challenges, it anticipates ARR growth in fiscal year 2026. Analyst firms such as Needham and Roth Capital Partners (WA:CPAP) have shown interest in Yext’s strategic direction and financial outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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