Similarweb upgraded to Buy from Neutral at Citi

Citi analyst Tyler Radke upgraded Similarweb (SMWB) to Buy from Neutral with a price target of $10, up from $6. The firm also opened a pair trade of overweight Similarweb, underweight ZoomInfo (ZI). The analyst believes Similarweb’s Q4 results signaled a turnaround with a rebound in growth metrics, improving execution with a sustainable ramp in profitability. This sets the stage for an accelerating sales and earnings profile through 2024, the analyst tells investors in a research note. Though Citi has some hesitancy around the data-as-a-service category with long-term concerns around competition and renewal rates, it believes “there’s a price for everything.” With Similarweb at 2.1-tomes forward sales with accelerating double-digit growth and positive free cash flow, the shares “just look undervalued,” the firm contends.