Goldman Sachs Initiates Similarweb Coverage, Product Upgrades Inspire Bullish Take

Core Viewpoint - Goldman Sachs analyst Adam Hotchkiss initiated coverage on Similarweb Ltd (SMWB) with a Buy rating and a price target of $16, citing potential for sustainable mid-to-high teens growth and improving margins due to recent initiatives [1][2]. Financial Performance - Hotchkiss projected fourth-quarter revenue of$65.4 million and adjusted earnings per share of 5 cents [4]. - The price target implies approximately 29 times EV/FCF based on current estimates [3]. Valuation and Market Position - Similarweb's shares are currently trading at a multiple of 4.5 times, which is a discount compared to software peers growing at 10-20% annually, which trade at around 6.6 times [2]. - The 4.5 times multiple reflects a premium to Similarweb's three-year historical trading average, driven by recent revenue acceleration and improving profitability [3]. Market Reaction - Similarweb stock is up 6.86% at $13.02 as of the last check [5].