Scott Berg, an analyst from Needham, maintained the Buy rating on Similarweb. The associated price target remains the same with $14.00.
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Scott Berg has given his Buy rating due to a combination of factors influencing Similarweb’s performance. The company reported an increase in revenue growth for the second quarter, with projections indicating even higher growth by the end of the fourth quarter of 2025. This growth is attributed to enhanced product offerings and increased sales productivity, driven by investments made at the beginning of the year.
Additionally, Similarweb’s platform, which now includes new AI-based modules, is gaining traction among customers who require more dynamic web traffic insights. This has resulted in the company achieving its best quarter in terms of acquiring new customers with annual recurring revenue exceeding $100,000. Despite the pressure on profitability due to these investments, with operating margins lower year-over-year, the expectation is that the company’s model will eventually return to improved operating margins.
In another report released today, Northland Securities also reiterated a Buy rating on the stock with a $15.00 price target.