Needham Downgrades SEMrush Holdings, Inc (SEMR) to Hold

Needham analyst Scott Berg downgraded SEMrush Holdings, Inc (NYSE: SEMR) from Buy to Hold.

The analyst comments "This morning, Adobe announced the pending acquisition of SEMrush for $12.00/share. The transaction values SEMR at ~3.4x EV/Revenue based on our FY25 estimate or ~3.0x EV/Revenue based on our FY26 estimate. We assume the sale process was competitive (although not confirmed until the proxy statement release) and do not expect a higher bid. That said, we view the take-out valuation of 2.9x FY26 as relatively low given the company's current growth rate and profitability which makes an over-the-top competitive bid not out of the question. We downgrade to Hold as shares are currently trading with 2% of the take out price."

For an analyst ratings summary and ratings history on SEMrush Holdings, Inc click here. For more ratings news on SEMrush Holdings, Inc click here.

Shares of SEMrush Holdings, Inc closed at $6.76 yesterday.

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