Piper upgrades Vimeo, names top small-cap pick in internet

Piper Sandler analyst Thomas Champion upgraded Vimeo (VMEO) to Overweight from Neutral with a price target of $10, up from $7. The firm names Vimeo its top small-cap internet pick for 2025. Management has spent the last two years resetting the cost structure and “low calorie marketing spend has been weeded out,” the analyst tells investors in a research note. The firm says that at the same time, Vimeo’s enterprise business has “flourished” and is now at $100M-plus annual run-rate, which will likely return the business to growth regardless of the outcome in self-serve. The company’s new CEO “has quickened the pace of execution,” adds Piper.