Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Citi cuts Fiverr stock target to $32, maintains buy rating

EditorNatashya Angelica
Published 02/23/2024, 01:01 PM
Updated 02/23/2024, 01:01 PM
© PA Images via Reuters Connect

On Friday, Citi adjusted its financial outlook for Fiverr International Ltd . (NYSE:FVRR), lowering the price target on the company's shares to $32 from the previous $37, while continuing to endorse the stock with a Buy rating. The reassessment follows Fiverr's release of their fourth quarter results for 2023 and projections for 2024, which presented a mixed financial picture.

The company reported increased adoption of its Complex Services and positive developments in its strategic shift towards higher market segments, as well as expanding profit margins. A notable highlight was the integration of artificial intelligence, which contributed to a 400 basis points increase in gross merchandise volume (GMV) for 2023. This technological advancement is expected to continue drawing in more projects.

Moreover, the spending by Fiverr's 2023 user cohort grew by 13% year-over-year, indicating the platform's success in attracting users with a higher spend potential.

Despite these positive trends, Fiverr is still navigating challenges due to broader economic factors that have affected consumer demand, especially in its Simple Services segment. The impact of AI was particularly felt in this area, where the segment's contribution to GMV dropped from 28% in 2022 to approximately 23% in 2023.

Citi's report also acknowledged the potential for Fiverr to accelerate its growth once the current economic pressures begin to ease. The optimism is partly due to Fiverr's recent product launches, such as those unveiled during their Winter Product Release event, which are anticipated to provide additional momentum for the company.

In summary, while Citi has reduced its price target for Fiverr, the firm maintains a positive outlook on the stock, classifying it as a Buy with a High Risk rating. This stance reflects confidence in Fiverr's strategic direction, AI integration, and potential for growth in a more favorable economic climate.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.