Jefferies analyst Surinder Thind maintains $SEMrush (SEMR.US)$ with a buy rating, and maintains the target price at $17.
According to TipRanks data, the analyst has a success rate of 58.3% and a total average return of 12.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $SEMrush (SEMR.US)$'s main analysts recently are as follows:
Semrush has been portrayed as evolving towards a more refined, enterprise-grade search engine optimization platform with a focus on moving upmarket and integrating artificial intelligence. Analysts have emerged from the company's analyst day with an 'incrementally positive' stance, emphasizing that the revealed details about their customer segment indicate a robust and rapidly growing enterprise segment in terms of annual recurring revenue.
The company's recent Analyst Day has reinforced the analyst's confidence in a crucial element of their positive outlook, specifically the expansion into enterprise-level clientele. It's observed that enterprise customers are investing between $40K-$60K on the platform on average. Currently, 291 customers spend upwards of $50K with the company. With over 8,000 enterprise customers already being paying users, there's potential for substantial growth in average revenue per customer, which could climb from around $7,500 to $50K. This growth opportunity also extends to the significant number of mid-market customers and the 21,000 agencies using the platform that could similarly increase their annual revenue rates to this level.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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