Oppenheimer Cuts Similarweb Price Target to $4 After Q4 Revenue Misses
Analyst Ken Wong cut Similarweb’s target price from $7 to $4 after Q4 revenue of $72.8 M fell short of the $76.4 M consensus due to delays in two large LLM deals. The Outperform rating remains, reflecting a 42% upside as the company enhances AI-focused sales productivity.
1. Price Target Reduction
On February 19, analyst Ken Wong reduced Similarweb’s price target from $7 to $4 while maintaining an Outperform rating, implying a 42% upside from current levels. This adjustment reflects tempered near-term growth expectations despite confidence in the company’s long-term AI positioning.
2. Q4 Revenue Miss
In the fourth quarter, Similarweb reported $72.8 million in revenue, missing consensus estimates of $76.4 million primarily due to delays in closing two large LLM deals. Despite the shortfall, enhanced sales productivity helped EBIT align with prior forecasts.
3. AI Strategy and Outlook
CEO Or Offer emphasized the company’s real-time digital insights as vital for training large language models, citing a milestone partnership with Manus. With a stronger focus on specialized sales training and an expanding AI deal pipeline, the firm expects profitable growth to accelerate as longer sales cycles conclude.