Street Calls of the Week
Investing.com - Citizens JMP analyst reiterated a Market Outperform rating and $17.00 price target on Similarweb Ltd (NYSE:SMWB) following a meeting with the company’s leadership team. According to InvestingPro data, analysts maintain a Strong Buy consensus, with price targets ranging from $10 to $17, suggesting potential upside. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis.
The meeting, held Tuesday at Citizens’ San Francisco offices, included Similarweb Founder & CEO Or Offer, Chief Business Officer Maoz Lakovski, and VP of IR Rami Myerson.
During the meeting, CEO Offer expressed positive sentiment about the company’s performance, stating that business is "Great... we were very happy with the last quarter performance."
Offer highlighted the company’s momentum, particularly in "selling data to LLMs [and] all the AI hype," suggesting strength in Similarweb’s artificial intelligence-related business segments.
The analyst maintained the positive rating despite Similarweb stock having decreased 29% year-to-date, compared to a 12% increase for the Russell 3000 index during the same period.
In other recent news, SimilarWeb Ltd. reported impressive second-quarter earnings, significantly surpassing analyst expectations. The company achieved an adjusted earnings per share of $0.07, compared to a consensus estimate of $0.00, and generated $71 million in revenue, exceeding the expected $68.84 million. This represented a 17% increase from the previous year’s $60.6 million for the same quarter. The strong performance was partly due to increased demand in the AI sector, with Gen AI and LLM training-related revenues contributing nearly 8% to the quarterly revenue. Following these results, Goldman Sachs reiterated its Buy rating with a $10.00 price target, while JMP Securities maintained a Market Outperform rating with a $17.00 price target. Oppenheimer also raised its price target to $14.00, citing strong AI demand. In other developments, CFO Jason Schwartz announced his departure after a decade with the company, prompting a search for his successor. Schwartz will remain in his role until a new CFO is appointed to ensure a smooth transition.
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