Fiverr International (NASDAQ:FVRR) shares climbed more than 9% on Friday, as investors viewed the stock’s valuation as attractive following its second-quarter earnings report. The company’s recent restructuring initiatives are expected to deliver roughly $30 million in cost savings, further boosting sentiment.
Analysts led by Marvin Fong upgraded Fiverr to Buy from Neutral, setting a price forecast of $31, implying 23% upside from Thursday’s close.
The brokerage highlighted four catalysts behind the upgrade. Fiverr’s recently announced restructuring, which cuts headcount by about 30% and should deliver considerable cost savings.
Also Read: Why JPMorgan Says Fiverr’s Painful Layoffs Could Lead To Long-Term Gain
While the company reiterated guidance and stressed the move was not a response to weakening demand, BTIG estimates the savings could boost fiscal year 2026 EBITDA by as much as 30% if fully realized.
BTIG said the Federal Reserve’s rate cut this week should prompt banks to start lowering lending rates. Since Fiverr’s core small and medium-sized business (SMB) clients typically borrow through banks, the brokerage expects their outlook and hiring intentions to improve.
The reduction in force is expected to ease stock-based compensation, historically 10% of sales, bringing it closer to a 6-8% range more typical of e-commerce peers.
BTIG flagged Fiverr’s steep discount to rival Upwork (NASDAQ:UPWK), trading at 4.6x fiscal year 2026 EV/EBITDA versus Upwork’s 10.1x, leaving room for multiple expansion.
BTIG lifted its fiscal year 2026 adjusted EBITDA estimate to $114 million from $102 million and values Fiverr at 6.5x fiscal year 2026 EV/EBITDA.
The brokerage acknowledged risks from AI adoption but said the impact may be overstated, particularly as recent AI product rollouts have underwhelmed. Fiverr’s $8 per share net cash also provides valuation support, it noted.
Price Action: FVRR shares were trading higher by 9.04% to $27.49 at last check Friday.
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