YEXT - Yext: Not So Bad

2024-06-19 06:32:36 ET

Summary

• Yext stock slumped after weak FQ1'25 results, but the company remains profitable.
• The digital management company disappointed on revenues and growth targets, but positive cash flows allow for the acquisition of Hearsay Systems to build momentum.
• The stock trades at only 1x EV/S targets, providing a substantial upside on the ability to return to growth.

Yext ( YEXT ) slumped following FQ1 results, though the quarterly results weren't so bad. The AI search company has definitely failed to hit growth targets, but Yext is highly profitable. My investment thesis remains ultra-Bullish on the stock, with a potential catalyst from the acquisition of Hearsay Systems to provide a boost to the momentum in the business....

For further details see: