Buy Rating Affirmed for Similarweb Amid Mixed Q3 Results and Strategic Upmarket Focus

Tip Ranks
2025.11.13 11:36
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Analyst Scott Berg of Needham reaffirmed a Buy rating on Similarweb with a $14.00 price target, citing mixed Q3 results and strategic upmarket focus. Despite revenue and cRPO growth slightly below expectations, the company showed improved profitability and strong customer metrics. Similarweb's upmarket strategy and sales adjustments have led to margin improvements, with potential for double-digit operating margins by FY 2026. Barclays also maintained a Buy rating with a $12.00 price target.

Analyst Scott Berg of Needham maintained a Buy rating on Similarweb, with a price target of $14.00.

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Scott Berg has given his Buy rating due to a combination of factors, including Similarweb’s mixed third-quarter results that showed both challenges and opportunities. While the company reported revenue and cRPO growth that were slightly below expectations, it demonstrated improved profitability and strong customer metrics, particularly with the addition of 12 new customers with annual recurring revenue exceeding $100k.
Furthermore, Similarweb’s strategic focus on the upmarket segment and recent adjustments in sales capacity have contributed to meaningful margin improvements. These factors, if maintained, could help the company achieve double-digit operating margins by the end of fiscal year 2026, even as it continues to grow at a mid-teen level. Despite some concerns about sales guidance and cRPO growth, the potential for sustainable margin expansion supports the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $12.00 price target.

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