UPDATE: Goldman Sachs Starts SEMrush Holdings, Inc (SEMR) at Neutral
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Goldman Sachs analyst Christopher Merwin initiates coverage on SEMrush Holdings, Inc (NYSE: SEMR) with a Neutral rating and a price target of $18.50.
The analyst comments "SEMrush is a leading provider of online visibility tools - search engine optimization, search engine marketing, content marketing, etc. - to small businesses in a roughly $14bn global TAM. SEMrush is able to deliver these services to its customers due in part to the aggregation of massive data sets of 1st and 3rd party data that help customers optimize their websites for traffic. There is a moderate amount of competition for this specific function, but we believe the data SEMrush is able to acquire helps to insulate the business from competitive risk. That being said, we believe the permanency of the organic 1st party and paid 3rd party data could see some risk if key players in the ecosystem wished to become competitive with their own tools or looked to block SEMrush's web crawling technology. With shares trading at 14x / 11x our CY21E/CY22E sales estimates relative to top line growth of 33%/26%, compared to comps at 22x / 18x relative to top line growth of 26%/26%, we believe this risk is adequately priced in. We therefore initiate coverage with a Neutral rating and $18.50 price target."
Shares of SEMrush Holdings, Inc closed at $17.93 yesterday.
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