William Blair analyst Arjun Bhatia has maintained their bullish stance on SMWB stock, giving a Buy rating today.
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Arjun Bhatia’s rating is based on several key considerations. Despite the fact that Similarweb’s operating margin guidance for 2025 fell short of expectations, mainly due to increased investments in go-to-market and R&D to capitalize on demand and prepare for a GenAI landscape, the decision to rate the stock as a Buy factors in the broader context of this investment. The company’s move to enhance its platform and sales capacity in response to strong demand indicates a proactive approach to growth rather than a reaction to weakness, suggesting potential for long-term gains.
Additionally, the impact of foreign exchange (FX) headwinds has been more significant than initially apparent, affecting revenue growth figures more than realized. This context reveals that the underlying business strength is more robust when adjusted for these FX effects, with growth figures aligning more closely with expectations. Consequently, the substantial decline in stock value appears to be an overreaction, especially considering the stock’s low trading multiple. This perspective, alongside the understanding of recent investments and market demand, supports the Buy rating.
According to TipRanks, Bhatia is a 5-star analyst with an average return of 13.9% and a 56.23% success rate. Bhatia covers the Technology sector, focusing on stocks such as Similarweb, Braze, and Salesforce.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $17.00 price target.