Analyst Doug Anmuth from J.P. Morgan maintained a Buy rating on Fiverr International and keeping the price target at $30.00.
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Doug Anmuth has given his Buy rating due to a combination of factors including Fiverr’s strategic restructuring and focus on AI-driven growth. The company is undergoing an AI-driven restructuring that aims to streamline operations and return to a startup-like agility, which involves reducing its workforce by approximately 30%. This restructuring is expected to generate significant cost savings, some of which will be reinvested in AI talent, positioning Fiverr to capitalize on larger growth opportunities in AI applications and enterprise projects.
Additionally, Fiverr’s commitment to becoming an AI-first company is anticipated to enhance efficiencies, particularly in coding and customer support, thus improving its EBITDA margin. Anmuth notes that Fiverr has accelerated its target to achieve a 25% adjusted EBITDA margin by 2026, reflecting confidence in the company’s ability to leverage AI for operational improvements. Despite potential short-term disruptions, the long-term outlook remains positive, with the stock undervalued compared to peers, supporting the Buy rating with a price target of $30 by December 2026.
In another report released today, Needham also reiterated a Buy rating on the stock with a $32.00 price target.