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Adobe Inc. (NASDAQ:ADBE) is pushing deeper into data-driven marketing with a plan to acquire SEMrush Holdings, Inc. (NYSE:SEMR) for $1.9 billion in cash.
The move is seen as bolstering its enterprise reach and competitive strength in search engine optimization and emerging generative engine optimization.
By integrating Semrush's robust artificial intelligence-powered search technologies into the Adobe Experience Cloud, Adobe aims to give marketers sharper insights into keywords, competitors, and demand signals while expanding its influence in brand visibility solutions.
Also Read: Wall Street Gives Adobe's AI Future A Thumbs-Up, But Investors Sell The Stock Anyway
JP Morgan analyst Mark R Murphy maintained an Overweight rating on Adobe with a price forecast of $520.
Murphy said Adobe plans to acquire Semrush in an all-cash deal valued at about $1.9 billion, paying $12.00 per share. The analyst viewed Semrush as a strong and innovative leader in both search engine optimization and the emerging generative engine optimization market.
However, he mentioned that Semrush recently struggled to sustain 20%+ revenue growth after setting aggressive expectations, putting pressure on valuation despite a solid technology foundation.
Murphy argued that Adobe can provide Semrush with the enterprise scale the company could not fully unlock on its own.
The analyst said Semrush historically focused on the midmarket and only recently began gaining traction with enterprise customers.
By bringing Semrush into Adobe's portfolio, he noted that Adobe can deliver key advantages such as brand recognition, global sales reach, and mature enterprise distribution channels.
According to Murphy, Semrush fits Adobe's strategy of merging "robust, well-designed technology" with Adobe's distribution power—capabilities that smaller software vendors often struggle to develop.
The analyst expected Semrush to strengthen the Adobe Experience Cloud, especially in the strategy and activation layer, helping marketers analyze trending topics, keyword performance, competitive movement, and demand signals.
He stated this as enhancing Adobe's data-driven marketing stack and expanding its influence in brand visibility solutions.
Murphy commented that the boards of both companies have approved the transaction. Adobe expects to close the deal in the first half of 2026, pending regulatory clearance and other closing conditions.
The analyst also pointed out that Semrush's founders and major stockholders, representing over 75% of the company's voting power, have already committed to supporting the deal.
Murphy remains positive on Adobe's fundamentals, highlighting "fairly durable" growth, early AI monetization opportunities, and encouraging customer and partner feedback.
He acknowledged rapid technological shifts and evolving AI pricing models, but emphasized Adobe's fast innovation pace and its progress in building an end-to-end creative ecosystem.
In his view, the company is well positioned for continued IT vendor consolidation and long-term growth, backed by strong profitability and a scaled, diversified customer base.
Murphy projected fourth-quarter revenue of $6.1 billion and adjusted EPS of $5.37.
SEMR Price Action: SEMrush Hldgs shares were up 0.47% at $11.82 at the time of publication on Thursday, according to Benzinga Pro data.
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