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Strategic Revenue Model Adjustments and Growth Prospects Support Buy Rating for Similarweb

Strategic Revenue Model Adjustments and Growth Prospects Support Buy Rating for Similarweb

William Blair analyst Arjun Bhatia has maintained their bullish stance on SMWB stock, giving a Buy rating on July 18.

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Arjun Bhatia has given his Buy rating due to a combination of factors including the strategic adjustments in Similarweb’s revenue model. The company is expected to experience a shift in revenue distribution between quarters in 2025, particularly moving $2 million from the third to the fourth quarter to better handle year-over-year comparisons. This adjustment follows a strong performance in the third quarter of 2024, where significant ARR expansion deals with major tech clients boosted revenue growth.
In addition, the revised estimates for 2025 suggest a positive outlook with incremental revenue growth in both the third and fourth quarters, attributed to increased sales capacity. The overall annual revenue projection remains stable at $285 million, reflecting a 14% growth. These factors combined indicate a promising potential for revenue reacceleration, supporting the Buy rating.

In another report released on July 18, Barclays also maintained a Buy rating on the stock with a $10.00 price target.

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