Fiverr International Ltd. (FVRR) PT Lowered to $16 at RBC Capital
RBC Capital analyst Brad Erickson lowered the price target on Fiverr International Ltd. (NYSE: FVRR) to $16.00 (from $28.00) while maintaining a Sector Perform rating.
The analyst commented, "FVRR's Q4 report was mixed with 2026 a transition year and likely to be read by investors as evidence of the AI bear case playing out. Positively, the company's diversification/focus on bigger customers & transactions is showing constructively: spend/buyer +13% (ahead of Street), transactions >$1k +23% & >$10K accelerated to +7% y/y where the strategy is to diversify away from a transaction-oriented marketplace to integrated work platform - meaning potential to tap larger buyers/ companies with potential for recurring spend. Less positively, the company guided '26 revenue/EBITDA 12%/37% below Street, respectively, framed as a transition/investment year where a meaningful portion of the business remains adversely exposed to AI. And while not a new concern, this is the first qtr where AI headwinds are more clearly affecting fundamentals. Simple services/categories are most affected and the issue is that the more insulated categories are only 15% of the business so could take years vs. quarters to mitigate the adverse exposure. Lowering estimates and target to $16 from $28. Given the downdraft of AI in the market right now, we believe the business needs to show net benefits of the more complex categories offsetting the simpler/disrupted ones before the multiple can fully stabilize or return to expansion - and continues to instruct our sidelined status on the name."