BofA update shows where active managers are putting money
Investing.com - JPMorgan upgraded Fiverr International Ltd . (NYSE:FVRR) from Neutral to Overweight on Thursday, while slightly reducing its price target to $30.00 from $32.00. According to InvestingPro data, five analysts have recently revised their earnings estimates upward, with price targets ranging from $28 to $44.
The upgrade comes despite Fiverr shares falling approximately 12% on Wednesday following the company’s second-quarter earnings report, which showed solid results and an in-line third-quarter outlook with reiterated 2025 guidance.
JPMorgan noted that Fiverr shares have declined about 35% since reaching approximately $34 on June 6, compared to the S&P 500’s 6% gain during the same period, suggesting the recent selloff is overdone.
The investment bank acknowledged investor concerns about artificial intelligence disruption affecting Fiverr’s gross merchandise value (GMV), particularly in simpler services, but expressed optimism about the company’s strategic AI investments driving growth in larger, more complex services.
JPMorgan reduced its 2026/2027 revenue estimates by approximately 2%/6% and adjusted EBITDA estimates by about 4%/10%, respectively, while basing its December 2026 price target of $30 on approximately 7.0x expected 2027 adjusted EBITDA of $108 million.
In other recent news, Fiverr International Ltd. reported second-quarter earnings that surpassed analyst expectations. The positive results were largely attributed to strong growth in AI-related services and the company’s Managed Services business. Despite this earnings beat, Needham has adjusted its price target for Fiverr from $36.00 to $32.00, while maintaining a Buy rating. The revision was influenced by ongoing challenges in Fiverr’s Gross Merchandise Value trends, which showed a worsening year-over-year decline in the second quarter compared to the first quarter of 2025. These developments highlight the mixed signals investors are receiving about Fiverr’s performance and future prospects. The company’s recent focus on AI-related services has clearly paid off, yet concerns remain regarding its marketplace challenges. Investors will be closely monitoring how Fiverr addresses these challenges in the coming quarters.
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