Analyst Bernie McTernan of Needham maintained a Buy rating on Fiverr International, retaining the price target of $36.00.
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Bernie McTernan has given his Buy rating due to a combination of factors that highlight Fiverr International’s potential for growth despite current market challenges. The company reported slightly better-than-expected second-quarter results, particularly in adjusted EBITDA, driven by improved services revenue. Although the year-over-year trend in gross merchandise volume showed some decline, there are promising areas such as AI-related categories and the company’s efforts to move upmarket, which are contributing positively to their performance.
Fiverr’s strategic focus on AI, workflow automation, and expanding into higher-value transactions has shown tangible results. The company has seen significant growth in specific verticals like Programming & Tech, Video & Animation, and Digital Marketing, which have accelerated year-over-year growth recently. Additionally, Fiverr’s marketplace is seeing a substantial portion of transactions exceeding $200, with dynamic matching GMV growing by 25% quarter-over-quarter. These factors, along with the continued growth in services revenue and strategic integrations, underpin McTernan’s optimistic outlook for Fiverr’s stock.