Similarweb: Strategic Investments and Attractive Valuation Support Buy Rating

William Blair analyst Arjun Bhatia has maintained their bullish stance on SMWB stock, giving a Buy rating on May 30.

Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Similarweb’s potential for growth and profitability. The company has completed its sales investments in the first quarter, and the management is optimistic about the future sales pipeline and expectations. This confidence is further bolstered by the reiteration of long-term profitability targets and the strategic decision to accelerate scaling through pulled-forward investments.
Additionally, Similarweb’s valuation appears attractive, as it trades at a significant discount compared to its software growth peers. While the stock may remain stable in the short term, there is an expectation of growth reacceleration and margin expansion by 2025. These elements contribute to a favorable risk/reward profile, supporting the Buy rating.

In another report released on May 30, Northland Securities also maintained a Buy rating on the stock with a $15.00 price target.