By Sam Boughedda
A Piper Sandler analyst maintained an Overweight rating and $50 per share price target on Fiverr International (NYSE:FVRR) in a research note Thursday, providing positive commentary on the stock.
The analyst told investors that Fiverr Business, a freelance platform tailor-made for larger teams and businesses, is an important growth lever for the company as it looks to push further upmarket.
"From our perspective, Fiverr Business will become an increasingly important platform for the company, not only due to its ability to drive adoption by larger customers but also to drive spend per buyer much higher," the analyst explained.
Piper Sandler noted that Fiverr Business remains a "key area" of investment for the company after management announced cost reductions and cost realignment on the last earnings call, highlighting the importance of the segment.
"Management has made several platform improvements over the last few quarters that should help drive continued growth 2x-3x the overall marketplace. Ultimately, we believe Fiverr business can represent a double-digit percentage of GMV within the next few years, up from ~5% today," the analyst concluded.
Fiverr shares closed Thursday's session up 4.5%.