Should I Buy SMWB? SMWB 2026 Analysis

Should You Buy Similarweb Ltd (SMWB) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

5.280

1 Day change

-6.88%

52 Week Range

17.640

Analysis Updated At

2026/01/26

Similarweb Ltd (SMWB) is not a strong buy for a beginner investor with a long-term focus at this time. While the company has shown some financial improvements, the technical indicators are bearish, options sentiment is negative, and there are no significant positive catalysts or recent news to support a strong upward movement in the near term. Given the elongated sales cycles and market volatility highlighted by analysts, it is better to hold off on investing in this stock until clearer positive trends emerge.

Technical Analysis

The technical indicators for SMWB are bearish. The MACD histogram is negative (-0.114) and contracting, suggesting weak momentum. The RSI is neutral at 25.044, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 5.63), with resistance levels at R1: 7.024 and R2: 7.455.

Options Data

Bearish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

The high put-call ratios indicate bearish sentiment in the options market, with significantly more puts than calls being traded and open.

Technical Summary

Sell

Buy

Positive Catalysts

The company's Q3 financials showed YoY revenue growth of 10.94%, a significant improvement in net income (+68.78% YoY), and an increase in gross margin to 79.67%. Analysts expect EBIT margin expansion in FY26 as internal sales re-enablement improves.

Neutral/Negative Catalysts

Elongated sales cycles and deal volatility in LLMs are expected to persist into FY26, as highlighted by analysts. The stock's technical indicators are bearish, and options sentiment is negative. There is no recent news or significant insider/hedge fund trading activity to act as a positive catalyst.

Financial Performance

In Q3 2025, Similarweb reported revenue growth of 10.94% YoY to $71.79M. Net income improved by 68.78% YoY to -$4.33M, and EPS improved by 66.67% YoY to -0.05. Gross margin increased to 79.67%, up 2.11% YoY. While the financials show improvement, the company is still operating at a net loss.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts maintain an Outperform rating but have lowered the price target twice in recent months (from $14 to $12, and then to $10). They highlight elongated sales cycles and deal volatility as challenges but expect EBIT margin expansion in FY26. The outlook remains cautious.

5 Analyst Rating

Wall Street analysts forecast SMWB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SMWB is 12.5 USD with a low forecast of 10 USD and a high forecast of 14 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

0 Hold

0 Sell

Strong Buy

Current: 5.670

Low

Averages

12.5

High

Current: 5.670

Low

Averages

12.5

High

Oppenheimer

Ken Wong

Outperform

NULL

downgrade

$12 -> $10

AI Analysis

2025-12-17

Reason

Oppenheimer

Ken Wong

Price Target

$12 -> $10

AI Analysis

2025-12-17

downgrade

Outperform

NULL

Reason

Oppenheimer analyst Ken Wong lowered the firm's price target on Similarweb to $10 from $12 and keeps an Outperform rating on the shares. The firm says that during its meeting with VP of IR Rami Myerson, Oppenheimer was reminded of elongated sales cycles and LLM deal volatility which was the source of the wider Q4 range. The firm expects the dynamic to extend into FY26. Management expects 200bps-300bps of EBIT margin expansion in FY26 as internal sales re-enablement improves execution and retention, while R&D/G&A lines hold relatively stable. Overall headcount should remain about static.

Oppenheimer

Ken Wong

Outperform

downgrade

$14 -> $12

2025-11-12

Reason

Oppenheimer

Ken Wong

Price Target

$14 -> $12

2025-11-12

downgrade

Outperform

Reason

Oppenheimer analyst Ken Wong lowered the firm's price target on Similarweb to $12 from $14 and keeps an Outperform rating on the shares. The firm says the company's Q3 results show continued digital data demand strength and customer gains. It sees conservatism in Similarweb's outlook and views its leading indicators as encouraging.

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SMWB Should I Buy

SMWB Should I Buy

Should You Buy Similarweb Ltd (SMWB) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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