Fiverr International (NYSE:FVRR) is an emblem of the gig economy of the 2020s. It’s also a small-cap company with a sizable pool of active buyers and impressive revenue growth. The share price is deeply depressed, so I’m bullish on FVRR stock and hope to see it recover this year.
Fiverr is a platform where independent contractors (i.e., gig workers) can compete for temporary jobs. I remember when most of the jobs on Fiverr only cost $5, but nowadays, the jobs often cost more than that. In any case, let’s see if there’s a bullish argument to be made in favor of Fiverr stock now.
A Big-Bank Analyst Picks Fiverr for 2024
Five-star analyst Eric Sheridan of Goldman Sachs (NYSE:GS) recently gave Fiverr International stock a Buy rating and a $43 price target. Since the stock is below $30 right now, Sheridan’s price target is quite optimistic.
At the same time, this doesn’t seem like an impossible price target. Right now, FVRR stock is heavily discounted compared to its 2021 peak of more than $300. Plus, Sheridan’s argument is based on a reasonable vision of growth for Fiverr.
Specifically, Sheridan sees “continued re-acceleration of revenue in 2024” for Fiverr. Personally, I was impressed when Fiverr delivered 12.1% year-over-year revenue growth in 2023’s third quarter. The company also reported having 4.2 million active buyers, indicating ongoing demand for gig workers.
Along with “product innovation & focus,” Sheridan also called for Fiverr to deliver “incremental improvements in profitability with a focus on marketing efficiency & higher-value buyers.” Notably, Fiverr reported Q3-2023 GAAP net income of $3 million, which is much better than the $11.4 million net loss from the year-earlier quarter.
Is FVRR Stock a Buy, According to Analysts?
On TipRanks, FVRR comes in as a Moderate Buy based on two Buys and one Hold rating assigned by analysts in the past three months. The average Fiverr stock price target is $37.67, implying 34.5% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell FVRR stock, the most accurate analyst covering the stock (on a one-year timeframe) is Jason Helfstein of Oppenheimer, with an average return of 147.62% per rating and a 64% success rate. Click on the image below to learn more.
Conclusion: Should You Consider FVRR Stock?
I tend to concur with Sheridan’s positive assessment of Fiverr International. Perhaps the market just isn’t sold on the idea that the gig economy can grow in the coming years. So, Fiverr looks like a potential surprise winner for 2024 and 2025, and I am definitely considering a position in FVRR stock.
