Surinder Thind, an analyst from Jefferies, reiterated the Buy rating on SEMrush Holdings (SEMR – Research Report). The associated price target was lowered to $16.00.
Surinder Thind has given his Buy rating due to a combination of factors influencing SEMrush Holdings. Despite a slight reduction in the 2025 revenue estimate, the company’s platform strategy is experiencing robust growth, particularly among enterprise clients, which is offsetting the higher churn rate among smaller clients. The valuation of SEMrush is currently near historic lows, with an EV/Revenue multiple of 2.9x, making the risk/reward profile attractive.
Moreover, the SEO Enterprise platform is gaining momentum, with a significant increase in enterprise customers, and the company is investing in AI capabilities, which are expected to enhance the platform further. Although there are some concerns regarding management’s revenue growth guidance and recent leadership changes, the overall growth prospects and attractive valuation justify the Buy rating. The focus on scaling and execution, alongside the continued increase in annual recurring revenue, supports a positive outlook for the stock.
Thind covers the Technology sector, focusing on stocks such as Accenture, CGI, and Cognizant. According to TipRanks, Thind has an average return of 6.4% and a 48.62% success rate on recommended stocks.
In another report released on February 28, Morgan Stanley also maintained a Buy rating on the stock with a $19.00 price target.