Friday, an investment firm raised its price target of Fiverr International Ltd . (NYSE: NYSE:FVRR) shares to $36 from $33, while maintaining a Buy rating on the stock. The decision follows Fiverr's first-quarter earnings, which slightly surpassed expectations, prompting the company to slightly increase its full-year guidance.
The first quarter of 2024 marked a significant moment for Fiverr, as the company witnessed a modest acceleration in Gross Merchandise Volume (GMV) growth after eleven consecutive quarters of decline.
This performance was largely fueled by a double-digit increase in Complex Services. The positive results have also helped to alleviate concerns about competition from generative AI in the market.
The analyst noted that Fiverr's Free Cash Flow (FCF) is converting at a rate of over 100% due to interest income. This strong cash flow has enabled the company to buy back shares, a move seen as leveraging the current undervalued state of its stock.
Fiverr's strategic actions, including share repurchases, reflect its confidence in the company's financial health and its commitment to delivering value to shareholders. The uptick in GMV growth and the company's robust cash position reinforce the positive outlook provided by the investment firm.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.