Upwork: Improving Marketplace Fundamentals and AI-Driven Growth Support Buy Rating Despite Soft Near-Term Outlook

In a report released yesterday, Maria Ripps from Canaccord Genuity maintained a Buy rating on Upwork, with a price target of $22.00.

Maria Ripps has given his Buy rating due to a combination of factors that underscore improving fundamentals and long‑term potential for Upwork. She highlights that fourth‑quarter performance modestly exceeded expectations on both revenue and adjusted EBITDA, while client churn hit its lowest level in more than two years, supporting a return to sequential client growth despite softer active client counts.

At the same time, she points to strong structural drivers such as accelerating AI‑related work, growing Enterprise GSV, and rapid adoption of the higher‑value Business Plus offering, which is already outpacing internal targets. Although near‑term guidance, especially for the first quarter, came in below consensus and the stock has already rallied significantly, she views marketplace quality as improving and believes the company has a credible path to meet its 2026 revenue and profitability goals, justifying a Buy rating with a $22 price target.

In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $22.00 price target.