What happened

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.  

So what

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.

$5 bill floating on a white background

Image source: Getty Images.

Now what

Speaking of which, most analysts following the stock currently project that Fiverr will grow its revenue 83% in the final quarter of 2020, to $54.1 million. Earnings -- presumably pro forma earnings -- are expected to be $0.12 per share, versus an $0.08 per share loss a year ago.  

Fiverr reports its fourth-quarter results on Feb. 18, and we'll find out if the analysts are right then.  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.