Shares of freelancing services platform Fiverr International (NYSE: FVRR) popped after receiving a new price target of $270 a share from Citigroup this morning. Currently trading just shy of $255 a share, the stock is already up 11.5% as of 11 a.m. EST.
Citigroup’s price target isn’t just any old number. In fact, StreetInsider.com points out that it is currently the Street high — the most ambitious price target for Fiverr stock issued by any analyst on Wall Street. (And of course, Citi also rates the stock a buy.)
Citi’s price target move is also a 46% increase over the analyst’s previous valuation of the stock. As Citi explains: “Strong third-party data trends … indicate our LTM [last 12 month] annual active buyers were too low.” Unique visitor and page view numbers on the Fiverr website are improving, a trend the analyst believes will lead to “slightly higher LTM annual spend per” seller buying ads for gig work on the site — resulting in more revenue and more profits for Fiverr.