Similarweb Lands Major AI Deals but Rich Valuation and Execution Risks Keep Rating at Hold

William Blair analyst Arjun Bhatia has maintained their neutral stance on SMWB stock, giving a Hold rating on June 4.

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Arjun Bhatia has given his Hold rating due to a combination of factors tied to both new opportunities and remaining uncertainties. He notes that Similarweb has secured two sizable, multiyear AI contracts totaling $47 million in total value, which push the company’s annual recurring revenue above $300 million and reflect rising demand from large AI clients.

At the same time, he points out that management has not yet raised its full-year outlook and that the stock now trades at a relatively rich multiple based on long-term free cash flow estimates. He also emphasizes that investors still need evidence of steadier execution and a sustained acceleration in growth over several quarters, so while his view has become more positive, he believes the risk‑reward profile currently justifies a Hold stance rather than an outright upgrade.

Bhatia covers the Technology sector, focusing on stocks such as InterDigital, Intuit, and Twilio. According to TipRanks, Bhatia has an average return of -2.9% and a 40.04% success rate on recommended stocks.

In another report released on June 4, Northland Securities also maintained a Hold rating on the stock with a $5.00 price target.