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.