YEXT Inc. (YEXT) PT Raised to $5.75 at DA Davidson

DA Davidson analyst Tom White raised the price target on YEXT Inc. (NYSE: YEXT) to $5.75 (from $5.50) while maintaining a Neutral rating.

The analyst commented: "We remain NEUTRAL-rated on shares of YEXT following F2Q'25 results that were a bit light on consolidated revenue (although Direct ARR did modestly improve Q/Q by $1.3M to $313.4M). YEXT's continued disciplined expense management resulted in F2Q EBITDA coming in solidly ahead of our $8.3M expectations at $9.8M. Management updated its full-year revenue outlook to reflect the closing of the Hearsay deal (closed on August 1st), but appears to be layering in some incremental conservatism related to the persistent macro pressures on enterprise software spending/sales cycles/budgets, etc. We are increasing our FY'2025 and FY'2026 revenue estimates by 6.4% and 11.5%, respectively, driven by the inclusion of Hearsay partially off-set by a more muted pick-up in YEXT's legacy business in the back-half of this fiscal year. Our FY'2025 and FY'2026 EBITDA estimates increase by 0.5% and 5.7%, respectively (we note that we F4Q'25 guidance implies adj. EBITDA margins of ~22%, which we anticipate YEXT to modestly improve on in fiscal '26 despite Hearsay being modestly dilutive to YEXT's legacy margin structure). We nudge up our price target from $5.50 to $5.75 (implies 5.7x our FY'26 EV/Sales, pro-forma to reflect the use of $125M in cash for the initial consideration of the Hearsay deal closed August 1st)."

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