DA Davidson Raises Yext PT to $7.5 from $5.75, Keeps Neutral Rating

DA Davidson Raises Yext PT to $7.5 from $5.75, Keeps Neutral Rating

Yext, Inc. (YXT), a leading digital knowledge management company, received a positive note from DA Davidson on Friday, with the firm raising its price target on the stock from $5.75 to $7.5 while maintaining a neutral rating. According to DA Davidson analyst Tom White, the increase in price target reflects the company's strong revenue growth and improving financials [1].

The updated price target represents a potential upside of approximately 18% from Yext's current stock price of around $6.30 [1]. This is in line with the average analyst target of $7.81, which suggests a potential increase of over 10% from the current price [2].

DA Davidson's decision to maintain a neutral rating on Yext comes amidst a generally positive outlook from analysts. According to data from Stockanalysis.com, the consensus among analysts is a "Buy" rating, with four out of seven analysts rating the stock as a strong buy [2].

Yext has been experiencing strong revenue growth, with the company reporting revenue of $428.95 million in fiscal year 2020, which increased to $471.73 million in fiscal year 2021 [3]. This represents a year-over-year increase of nearly 10%, and the company is expected to continue growing at a robust pace in the coming years [3].

The company's strong financial performance has also been reflected in its earnings per share (EPS), which increased from a loss of $0.02 in fiscal year 2020 to $0.39 in fiscal year 2021 [3]. This represents a year-over-year increase of over 1,800%, and the company is expected to continue reporting strong EPS growth in the coming years [3].

Despite the positive outlook, Yext's stock has underperformed the market in recent months, with the stock down around 19% from its 52-week high [1]. This may present an opportunity for investors looking to buy into a company with strong growth potential at a potentially discounted price.

References:
[1] "DA Davidson Raises Yext PT to $7.5 from $5.75, Keeps Neutral Rating." Seeking Alpha, December 10, 2021. https://seekingalpha.com/news/3829698-davidson-raises-yext-price-target-to-7-5-from-5-75-keeps-neutral-rating?source=email_macrocap_daily
[2] "Yext, Inc. (YXT) Stock Analysis." Stockanalysis.com, December 10, 2021. https://stockanalysis.com/stocks/yext/forecast/
[3] "Yext, Inc. (YXT) Financial Statements." Yahoo Finance, December 10, 2021. https://finance.yahoo.com/quote/YXT/financials?p=YXT