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Investing.com - KeyBanc has lowered its price target on SEMrush Holdings, Inc (NYSE:SEMR) to $12.00 from $16.00 while maintaining an Overweight rating on the stock. The company, currently trading near its 52-week low at $7.27, has seen its shares decline by 47% over the past six months, according to InvestingPro data.
The price target reduction follows SEMrush’s quarterly results, which showed annual recurring revenue (ARR) missing KeyBanc’s estimates and a decline in paying customers for the first time. Despite these challenges, the company maintains impressive gross profit margins of 82% and has achieved revenue growth of 22.75% over the last twelve months.
SEMrush also cut its full-year guidance, with an implied acceleration expected in the fourth quarter as the company exits the year.
KeyBanc expressed concern about the timing of the guidance reduction, noting it comes amid ongoing debate about how AI’s impact on search engines affects companies like SEMrush that help businesses improve their search visibility.
The research firm indicated it might revisit its investment thesis on SEMrush depending on explanations provided during the company’s upcoming conference call. For investors seeking deeper insights, InvestingPro offers 13 additional investment tips and a detailed Fair Value analysis that suggests the stock may be undervalued at current levels.
In other recent news, Semrush Holdings Inc. reported its second-quarter 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of -$0.04, significantly missing the forecasted $0.08. Despite this shortfall, Semrush experienced a slight revenue beat, with revenue reaching $108.9 million, marking a 20% increase compared to the previous year. This revenue growth reflects the company’s ongoing strategic focus on expanding into enterprise and AI segments. The earnings report led to a notable drop in the company’s stock during after-hours trading. Investors are closely watching how Semrush’s strategic shifts will impact its financial performance in the coming quarters. The company’s recent developments highlight the challenges and opportunities it faces in a competitive market landscape.
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