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Investing.com -- BTIG upgraded Fiverr International to Buy from Neutral in a note on Friday, setting a $31 price target that implies 23% upside from Thursday’s close.
The firm said multiple catalysts are aligning to support the shares, citing restructuring, lower borrowing costs for clients, and valuation.
In its note, BTIG said it had previously viewed Fiverr’s valuation as appealing but lacked “incremental reasons to want to own it.”
The recent restructuring, which reduces headcount by about 30% and generates roughly $30 million in annual cost savings, has changed that view.
Importantly, “FVRR reiterated guidance and stressed that the restructuring is not in response to any weakening in the business,” BTIG wrote.
The firm noted that if all the savings flowed to the bottom line, fiscal 2026 EBITDA would rise by about 30%, though management signaled it will reinvest about half into growth.
Even so, BTIG said “shares are cheaper than they were to begin the week on an EV/EBITDA basis.”
The second catalyst comes from this week’s Federal Reserve rate cut. BTIG expects banks will now begin lowering lending rates, which should help Fiverr’s small- and medium-sized business clients.
“Given FVRR’s core SMB client base typically borrows through banks, we believe their outlook will begin improving, as should hiring intentions,” the firm wrote.
The restructuring also reduces stock-based compensation, which BTIG said had been “a persistent issue.”
Finally, BTIG highlighted valuation, noting Fiverr trades at 4.6x FY26 EV/EBITDA, a roughly 55% discount to Upwork. “We think this historically wide disparity gives FVRR shares oxygen for multiple expansion,” the firm said.