Fiverr International Ltd (NYSE: FVRR) has been cut almost in half over the past eight months but a Roth MKM analyst is convinced that it’s ripe for recovery now.
Fiverr stock could climb significantly to $33On Tuesday, Rohit Kulkarni upgraded the online marketplace for freelance services to “buy” and said its shares could climb to $33 – up roughly 45% from here.
His bullish view on Fiverr stock is based on rising interest in artificial intelligence that he expects will serve as a tailwind for the New York listed firm.
Nearly half of the business owners confirmed in a recent survey that they were very likely to hire freelancers for AI-related services, the analyst told clients in a research note on Tuesday.
Fiverr is expected to swing to a profit of 4 cents per share in its current financial quarter.
Fiverr is a preferred platform among freelancersFiverr has been in a downtrend for the better part of this year and is now trading at an attractive valuation, as per Rohit Kulkarni.
Other reasons the Roth MKM analyst cited for his constructive view on the Israeli multinational include signs of improving macro trends and the fact that it continues to be one of the preferred platforms among freelancers.
Corporate buyers and freelancers have a slightly more positive outlook on gig platforms vs May ’23 & Jan ’23. We now rate FVRR a buy on valuation, positive freelancer survey, and AI-related improvements.
Still, Kulkarni prefers Upwork over Fiverr stock in the medium-term. Shares of Upwork Inc have lost about 45% since late August.
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