Wall Street Firms Bullish on Similarweb Ltd (SMWB) on Improving Industry Trends

Similarweb Ltd (NYSE:SMWB) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 15, analysts at Citizens reiterated a Market Outperform rating on Similarweb Ltd (NYSE:SMWB) and maintained a $17 price target.

The research firm remains optimistic about the company’s outlook, impressed by its leading digital intelligence product suite, complemented by GenAI Intelligence and data-selling capabilities for large language models. Likewise, it has touted the company’s long-term prospects while targeting a large total addressable market of $55 billion.

Nevertheless, Citizens’ analysts have also raised concerns over longer sales cycles as the industry transitions from search engine optimization to generative engine optimization. The company could also come under pressure owing to possible spending adjustments by enterprise accounts following Adobe’s pending acquisition of Semrush.

On the other hand, analysts at Oppenheimer reiterated an Outperform rating on the stock but cut the price target to $10 from $12 on December 17. The price target adjustment is in response to demand volatility, artificial intelligence tailwinds, leadership changes, competitive dynamics, and margin trajectory. Amid the challenges, management projects 200-300 basis points of EBIT margin expansion in fiscal 2026 on internal sales improvements, boosting execution and retention. Research and development and G&A expenses are also expected to stabilize.

Similarweb Ltd (NYSE:SMWB) provides a digital intelligence platform that offers data and analytics to help businesses understand online behavior, benchmark against competitors, and optimize digital strategies for growth in marketing, sales, and market research. Its tools analyze website traffic, app usage, consumer behavior, and marketing performance, providing insights into market trends and competitor strategies to support better decision-making.

While we acknowledge the potential of SMWB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.