Investment bank DA Davidson lowered its price target on Yext Inc. to $6.00 from $8.25 and retained a Neutral rating on the stock. The adjustment follows a recent pullback in Yext shares, which are trading at $5.06 and have fallen 28.7% over the past week.
The price target reduction comes after Michael Walrath, Yext’s CEO and Chairman, withdrew his previously announced proposal to acquire all outstanding shares of the company that he does not already own. Walrath had earlier proposed to acquire the remaining shares for $9.00 per share in cash.
DA Davidson said its new $6.00 target equates to an implied 1.6x EV/Sales multiple based on the firm’s fiscal 2027 estimates for Yext. Despite lowering the target, DA Davidson maintained its Neutral stance on the stock.
Yext recently released its fiscal third-quarter 2026 results. The company reported revenue of $112 million, which missed analyst expectations of $113.13 million and represented a 2% year-over-year decline. On the profitability side, Yext delivered adjusted earnings per share of $0.14, slightly ahead of the $0.13 consensus.
Following his decision to withdraw the acquisition proposal, Walrath cited an inability to secure the necessary financing as the reason for stepping back from the $9.00-per-share cash offer. He communicated to the Board of Directors that he remains committed to continuing in his role leading the company.
In the wake of the withdrawn buyout proposal, Yext also announced plans to undertake a tender offer. These developments mark a shift in the company’s near-term strategic and capital allocation picture as it balances operational performance with shareholder actions.
Summary
DA Davidson cut its price target on Yext to $6.00 from $8.25 and kept a Neutral rating after CEO Michael Walrath withdrew a $9.00-per-share proposal to acquire the remaining outstanding shares. Yext reported Q3 fiscal 2026 revenue of $112 million and adjusted EPS of $0.14. Walrath said he could not secure financing for the buyout but affirmed his intention to remain CEO; the company announced a subsequent tender offer.
Key Points
- DA Davidson reduced its price target to $6.00 from $8.25 and retained a Neutral rating.
- Yext shares are trading at $5.06, down 28.7% over the past week.
- CEO Michael Walrath withdrew a $9.00-per-share cash acquisition proposal, citing an inability to secure necessary financing, and remains committed to leading the company; Yext plans a tender offer.
- Fiscal Q3 2026 results: revenue $112 million (below $113.13 million estimate), adjusted EPS $0.14 (above $0.13 consensus).
Risks and Uncertainties
- Financing risk - Walrath’s inability to secure funding for the $9.00-per-share offer introduces uncertainty around strategic buyout attempts and potential future capital transactions.
- Share-price volatility - The recent steep decline in the stock price increases investor exposure to market-driven swings and may affect access to capital or the attractiveness of further buyback or tender strategies.
- Operational and guidance risk - Revenue underperformance relative to analyst estimates highlights pressure on near-term growth and could influence analyst valuations and investor sentiment.
This report presents the most recent analyst action and company disclosures; it does not project outcomes beyond the facts released by the company and DA Davidson.