Fiverr stock price target lowered to $30 by Oppenheimer on AI transition

Investing.com - Oppenheimer has lowered its price target on Fiverr International Ltd. (NYSE:FVRR) to $30.00 from $35.00 while maintaining an Outperform rating. Currently trading at $22.93, InvestingPro analysis suggests the stock is undervalued, with impressive gross profit margins of 81%.

The adjustment follows Fiverr’s announcement on Tuesday of a significant workforce reduction, cutting approximately 30% of its headcount as part of a strategic shift toward an AI-focused future. The company plans to eliminate around 250 positions, primarily reducing middle management and engineering roles.

Fiverr intends to reinvest 50% of the cost savings from these cuts to hire higher-priced AI talent, positioning itself to help businesses of all sizes implement AI-enabled services. The company has not provided revenue guidance for fiscal year 2026.

Despite the headcount reduction, Fiverr expects its FY26 EBITDA margin to reach 25%, compared to Oppenheimer’s previous estimate of 23% and the Street’s consensus of 22%. Oppenheimer has revised its FY26 revenue growth projection downward to 5% year-over-year from its previous 15% estimate.

The new $30 price target represents 7x FY26 EBITDA, which Oppenheimer notes is a 41% discount to peers, while Fiverr is growing FY24-FY26 EBITDA 197% faster than its peer group.

In other recent news, Fiverr International Ltd . reported its Q2 2025 earnings, slightly surpassing forecasts with earnings per share of $0.69 compared to the expected $0.67. The company also exceeded revenue expectations, posting $108.6 million against the anticipated $107.73 million. Additionally, Fiverr announced a restructuring plan that includes cutting approximately 250 jobs as part of a shift to become an "AI-first company." This restructuring aims to create a leaner organization with fewer management layers and an AI-native infrastructure. Despite the workforce reduction, Fiverr has maintained its guidance for the third quarter and full year 2025. In terms of analyst perspectives, JMP Securities reiterated its Market Perform rating on Fiverr, citing macroeconomic challenges and potential AI disruptions. The firm noted that Fiverr’s recent restructuring was not due to weakening demand. These developments reflect Fiverr’s strategic focus and operational adjustments amidst evolving market conditions.

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