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On Friday, Citi analysts showed continued confidence in Fiverr International Ltd . (NYSE:FVRR), increasing their price target on the company’s shares to $40.00, up from the previous target of $39.00, while reaffirming a Buy rating. Currently trading at $33.15, InvestingPro analysis suggests the stock is undervalued. The adjustment followed Fiverr’s first-quarter results for 2025, which, despite ongoing macroeconomic challenges affecting Active Buyer growth, indicated signs of demand stabilization.
Fiverr’s strategy to target higher-value projects appears to be paying off, as evidenced by the signing of multiple contracts exceeding $100,000 through Fiverr Pro. The company’s impressive gross profit margin of 81.36% and revenue growth of 10.41% over the last twelve months reflect this success. Additionally, the company has seen a notable increase in Spend per Buyer, which has risen by 9% year-over-year.
The recent launch of Fiverr Go, particularly the Personal Assistant feature, has shown promising early results. Just two months after its introduction, the feature has already contributed to a 10% lift in 14-day conversion rates compared to historical averages. This success is expected to drive further adoption among sellers and expand into new categories, providing potential tailwinds for demand and Seller Services revenue growth.
Citi’s analysts highlighted Fiverr’s effective management of its financial resources, including the execution of a $100 million buyback program. They also pointed out the company’s expanding margins as a positive indicator of its financial health.
Reiterating the Buy/High Risk (Buy/HR) rating, Citi anticipates that Fiverr’s strategic initiatives and the early benefits from new services like Fiverr Go will continue to support the company’s growth trajectory and contribute to its success in the competitive online marketplace sector. InvestingPro subscribers can access 14 additional investment tips and a comprehensive Pro Research Report for deeper insights into Fiverr’s financial health and growth potential.
In other recent news, Fiverr International Ltd. reported robust revenue performance for the first quarter of 2025, with a second-quarter revenue forecast slightly exceeding Goldman Sachs’ expectations. Following this, Goldman Sachs analyst Eric Sheridan raised the firm’s price target for Fiverr from $41 to $47, maintaining a Buy rating on the shares. Fiverr’s Marketplace and Services segments are experiencing growth, particularly with the success of Fiverr Ads, Seller Plus, and AutoDS. The company has also authorized a $100 million share repurchase program as part of its broader capital allocation strategy. This move aims to enhance shareholder value and manage debt, with share repurchases potentially occurring in various forms, depending on market conditions.
JMP Securities analyst Andrew Boone maintained a Market Perform rating on Fiverr, noting the challenges posed by AI competition. Despite these challenges, Fiverr is integrating its own AI innovations, such as Fiverr Go and AI Assistant, into its platform. The company reiterated its medium-term financial targets, including a 25% adjusted EBITDA margin by 2027. Fiverr also aims for a 14% compound annual growth rate in free cash flow through the same year, reflecting confidence in its strategic direction.
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