Fiverr International Ltd Stock Forecast
According to the predictions of nine analysts, the expected average target price for Fiverr International Ltd over the next year is USD 45.54, and their average recommendation for the stock is a Buy. However, Stock Target Advisor‘s analysis is Bearish, based on two positive signals and six negative signals. As of the last closing, the stock price was USD 44.89, which is an increase of +5.28% over the past week, +32.30% over the past month, but a decrease of -35.95% over the past year.
Analysts Coverage Change:
- RBC raises the price target on Fiverr International to $40 from $33 and maintains the “Sector Perform” rating.
- JMP Securities maintains a “Market Perform” rating and raises the price target to $55 from $50.
- Needham & Company maintains a “Buy” rating and raises the price target to $50 from $40.
- Citigroup maintains a “Buy” rating and raises the price target to $58 from $45.
Positive Fundamentals:
Fiverr International is a stock that investors seem to like for its superior risk-adjusted returns. This means that the stock has provided investors with higher returns relative to the amount of risk they have taken on compared to other companies in the same industry or sector. The outperformance has been sustained over a hold period of at least 12 months, which indicates that the company’s success is not a fluke.
The company’s ability to generate positive cash flow is also a positive factor that investors appreciate. Positive cash flow is an essential metric that indicates a company’s ability to generate cash from its operations, which is crucial for its long-term sustainability and growth. Positive cash flow also allows a company to invest in growth opportunities, pay off debts, and return value to shareholders through dividends or share buybacks.
Furthermore, Fiverr International has maintained positive total cash flow over the most recent four quarters, which is an impressive feat. This means that the company has been able to generate cash inflows from its core business activities, such as freelance services and digital marketing, that exceed its cash outflows for expenses like salaries, marketing, and operating costs. Positive total cash flow is a strong indicator of a company’s financial health, and investors tend to view it positively.
Overall, investors seem to appreciate Fiverr International for its superior risk-adjusted returns and positive cash flow. These factors suggest that the company is well-positioned for long-term growth and success, and it may continue to be an attractive investment opportunity for investors.
Negative Fundamentals:
Fiverr International is a volatile stock that has shown above-average returns in its sector over the past 5 years. However, this volatility also means that investing in this stock comes with higher risk. Additionally, the stock is currently trading at a high price to earnings, book value, and cash flow compared to its peers, indicating that it may be overpriced.
Moreover, the company is highly leveraged and has a debt to equity ratio that places it in the bottom half of its sector peers. This high leverage can be a sign that the company is aggressively trying to grow, but it can also increase the risk for investors.
Finally, Fiverr International has negative total free cash flow, which suggests that the company may not be generating enough cash to cover its expenses or make investments in future growth. Overall, while Fiverr International has shown above-average returns in the past, investors should carefully consider these potential risks before investing in the stock.
FA Score (Fundamental Analysis):
The fundamental analysis of Fiverr International is “Bearish” with a FA score of 2.5 out of 10, where 0 is very bearish and 10 is very bullish.
