Yext Inc (NYSE: YEXT) shares have outperformed the Nasdaq Composite Index year-to-date period, prompting KeyBanc Capital Markets to move to the sidelines.
Analyst Brent Bracelin downgraded Yext from Overweight to Sector Weight.
The run in Yext shares in 2018 is warranted given improving investor optimism on sales productivity, as well as voice search and AI tailwinds, Bracelin said in the downgrade note.
KeyBanc sees a fair value of $20 for the shares versus a prior price target of $18, and Bracelin said the potential exists for further upside to the sell-side firm's 31-32 percent growth estimates for the second half of 2018.
KeyBanc's bull case rose from $24 to $25 in the event of an acceleration in revenue if the company gains share in a large total addressable market. The firm's bear case was hiked from $12 to $14.
Growth must accelerate in the second half to justify further multiple expansion, Bracelin said.
"We remain bullish on the medium-to-long-term potential for YEXT as a leading digital knowledge platform that is enabling brands to improve online customer experiences."
The Price Action
Yext shares have gained about 61 percent year-to-date.
The stock was sliding 5.12 percent to $18.36 at the time of publication Wednesday.
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Photo courtesy of Yext.
Latest Ratings for YEXT
|Jul 2018||KeyBanc||Downgrades||Overweight||Sector Weight|
|Jun 2018||Morgan Stanley||Maintains||Equal-Weight||Equal-Weight|
View More Analyst Ratings for YEXT
View the Latest Analyst Ratings
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