SunTrust Robinson Sticks to Its Buy Rating for Yext Inc (YEXT)

By Jason Carr

In a report released today, Naved Khan from SunTrust Robinson maintained a Buy rating on Yext Inc (YEXTResearch Report), with a price target of $28. The company’s shares opened today at $14.42.

Khan wrote:

“We believe that Yext remains early in its growth cycle with an appealing overall opportunity, given a sizable/expanding TAM and lack of meaningful competition. We view mgt’s recent move to increase focus on the mid- size category and de-emphasize small/micro positively, as it better positions the business for strong, sustainable growth and higher profitability past the transitory hiccups. We do not see signs of a macro-impacted slowdown in sales and expect incremental margin benefit in G&A for FY20. in FY20. While discontinuing direct sales into small/micro businesses (6% of 3Q19 revs vs 10% in FY18) represents a near-term drag, we expect at least some of it to be offset by contribution from ramp in sales headcount for mid-size businesses (10-100 licenses, typically).”

According to TipRanks.com, Khan is a 5-star analyst with an average return of 17.9% and a 68.7% success rate. Khan covers the Technology sector, focusing on stocks such as Endurance International, Wix.com Ltd, and trivago NV.

Yext Inc has an analyst consensus of Moderate Buy, with a price target consensus of $23.50.

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The company has a one-year high of $27.19 and a one-year low of $10.58. Currently, Yext Inc has an average volume of 941.5K.

Based on the recent corporate insider activity of 218 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of YEXT in relation to earlier this year.

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Yext, Inc. is an emerging growth company engages in software development. It offers a cloud-based digital knowledge platform which allows businesses manage their digital knowledge in the cloud such as financial information, resources and performance of these resources on a consolidated basis and sync it to other application such as Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp. It offers the Yext Knowledge Engine package on subscription basis which has an access to Listings, Pages, Reviews and other features. The Listing feature provides customers with control over their digital presence, including their location and other related attributes published on the used third-party applications. The Pages feature allows customers to establish landing pages on their own websites and to manage digital content on those sites, including calls to action. The Reviews presence enables customers to encourage and facilitate reviews from end consumers. The company was founded by Howard Lerman, Brent Metz, and Brian Distelburger in 2006 and is headquartered in New York, NY.