Positive Outlook for Yext: Buy Rating Supported by Strong Quarterly Results and Promising Profitability

Needham analyst Ryan MacDonald reiterated a Buy rating on Yext (YEXT – Research Report) today and set a price target of $10.00.

Ryan MacDonald has given his Buy rating due to a combination of factors that indicate a positive outlook for Yext. The company’s recent quarterly results surpassed expectations, and while the full-year revenue guidance for FY26 was not provided, there is an anticipation of continued ARR growth, suggesting that achieving single-digit revenue growth is feasible.
Furthermore, Yext’s profitability outlook is promising, with expectations of over 20% adjusted EBITDA margins, positioning the company closer to the Rule of 30 status. The management’s optimistic view on new product traction and the potential for revenue to exceed expectations as the macroeconomic environment improves further support the Buy rating. Additionally, the stock is seen as undervalued, trading at just 1.6 times the FY26 sales estimate, which presents a compelling investment opportunity.

In another report released on February 26, Roth MKM also reiterated a Buy rating on the stock with a $9.50 price target.