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Yext Maintains Buy Rating Amid CEO Acquisition Proposal and Q2 Earnings Beat
ByAinvest
Monday, Aug 18, 2025 7:41 pm ET1min read
Analyst Ryan MacDonald maintains a Buy rating and $10 price target for Yext due to the CEO's acquisition proposal and strong Q2 performance. The special committee evaluating the proposal indicates potential increased shareholder value. Yext's new Scout offering and Q2 results meeting or exceeding guidance further support the positive outlook. MacDonald's average return is 6.1% and success rate is 48.12%.
Yext Inc. (NYSE: YEXT) saw its stock price rise following CEO Michael Walrath’s unsolicited proposal to acquire all outstanding shares of the company for $9 per share. The stock, which has delivered a remarkable 63.1% return over the past year, currently trades at $9.05, near its 52-week high of $9.15 [1].The proposal, valued at $1.1 billion, was made by Walrath, who owns 2.8% of the company's shares. The offer represents an 11.2% premium to the stock's Friday closing price of $8.09 [3]. Yext has formed a special committee of independent directors to evaluate the proposal and consider any superior offers that might be received [2].
Analyst Ryan MacDonald from Needham reiterated a Buy rating and a $10.00 price target on the stock, citing the potential for increased shareholder value through the acquisition proposal [1]. The analyst also noted the growing momentum of Yext’s new Scout offering and the potential for additional offers as reasons for maintaining the firm’s valuation perspective on the company.
In addition to the acquisition proposal, Yext announced that its second-quarter results would meet or exceed previously provided guidance ranges, suggesting that the buyout offer is not related to performance issues. However, the company has withdrawn its fiscal year 2026 guidance [1].
The company’s recent Q1 2026 earnings report met the earnings per share forecast of $0.12 and surpassed revenue expectations with $109.5 million compared to the projected $107.6 million [2]. The strong financial performance and the potential for increased shareholder value have led to upgrades in stock price targets by analysts. DA Davidson raised Yext’s stock price target to $8.25 from $7.50, maintaining a Neutral rating, while B. Riley upgraded Yext stock from Neutral to Buy, increasing the price target to $10.00 [2].
These developments indicate a period of significant activity and investor interest in Yext. The company's new Scout offering and strong Q2 performance further support a positive outlook for the stock.
References:
[1] https://www.investing.com/news/analyst-ratings/yext-stock-rises-after-ceo-walrath-offers-9-per-share-buyout-proposal-93CH-4198138
[2] https://seekingalpha.com/news/4486493-yext-stock-jumps-as-ceo-submits-proposal-to-buy-rest-of-the-co-for-9share
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UA0O5:0-yext-jumps-as-ceo-offers-to-buy-company/
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