Buy this freelance services stock for more than 35% upside, UBS says
UBS thinks Fiverr International can use a lead in job listings to pick up steam in 2024. The firm initiated the stock with a buy rating in a Tuesday note and a $33 per share price target. UBS’ forecast implies more than 36% upside from Tuesday’s $25.16 close. Fiverr operates as an online marketplace to bring together freelancers, or sellers, with small businesses and other buyers for a range of projects. Analyst Kunal Madhukar said Fiverr’s lead in overall job listings and higher trending multiples heading into 2024 underpinned his bullish forecast on the stock. “While our data suggests the declining trend in job listings may be stabilizing, in that the y/y [year-over-year] decline in listings 3Q-to date is (28.7)% versus (32.5)% in 2Q and (26.5)% in 1Q23, job listings should really improve when businesses become more confident about macro,” Madhukar said. While UBS expects a decline in quarter-over-quarter gross domestic product in the fourth quarter of 2023 heading into the first quarter of 2024, Madhukar sees an acceleration in the second quarter of next year. “We are projecting growth to begin reaccelerating in 2024, albeit at below historical seasonality levels through 2025,” he said. Fiverr shares have struggled this year, losing more than 17%. Over the past three months, the stock is down 11.4%. FVRR YTD mountain Fiverr International stock. — CNBC’s Michael Bloom contributed to this report.
