Similarweb (SMWB – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Jason Helfstein from Oppenheimer remains neutral on the stock and has a $8.00 price target.
Jason Helfstein’s buy rating for Similarweb’s stock (SMWB) is based on a variety of factors. The primary reasons are the company’s continued ability to hit profitability estimates by managing expenses and the increasing share of customers opting for multi-year subscriptions. Despite longer sales cycles, especially with small and medium businesses, the company’s 3Q revenue was 1% above the Oppenheimer/Street estimate. Furthermore, the operating income was considerably higher than predicted, with better margins.
Helfstein also notes improvements in the demand environment within Europe and the Asia-Pacific region. The company’s management believes the business model has significant leverage, and a positive outlook is expected to be provided on the 4Q call. The price target assumes a 16x ’25E Free Cash Flow, discounted at 15%, implying a 3x ’24E Gross Profit. This is despite the company’s gross profit growth from ’22–’25E largely aligning with peers. These factors collectively contribute to Helfstein’s decision to maintain an Outperform rating for Similarweb.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $14.00 price target.
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Similarweb (SMWB) Company Description:
Similarweb Ltd provides a platform for digital intelligence, delivering a view of the digital world that empowers its customers to be competitive in markets.
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