Similarweb downgraded to Neutral from Buy at Citi

Citi analyst Tyler Radke downgraded Similarweb to Neutral from Buy with a price target of $7, down from $10. The analyst downgraded several small-cap 2021 initial public offering application software names. The stocks "look more vulnerable" to weaker IT budgets given their less mature go-to-market motions with less well-defined total addressable markets, Radke tells investors in a research note. While increased acquisition activity is an "upside risk" for these names, their lack of profitability and worsening sales efficiency profiles likely keeps investors on sidelines, says the analyst.