Marvin Fong, an analyst from BTIG, maintained the Buy rating on Upwork (UPWK – Research Report). The associated price target remains the same with $18.00.
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Marvin Fong has given his Buy rating due to a combination of factors that highlight Upwork’s strong performance and potential for growth. Despite a slight projected decline in FY25 revenue, Upwork’s recent earnings exceeded expectations with impressive results in gross merchandise volume (GMV), revenue, and adjusted EBITDA. The company has shown a consistent ability to grow its take rate, driven by the success of its Ads & Monetization products and subscription packages, which contributed significantly to take rate accretion in the past year.
Furthermore, Upwork’s guidance for the first quarter of FY25 indicates stronger-than-anticipated growth, reflecting a positive outlook amidst broader economic uncertainties. The company’s AI-related offerings and increased client engagement in AI work also suggest a strategic positioning for future growth. These elements, combined with the potential for opportunistic stock buybacks, underpin Marvin Fong’s confidence in Upwork’s stock, resulting in the Buy rating and a price target of $18 based on projected earnings data.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $19.00 price target.
UPWK’s price has also changed dramatically for the past six months – from $9.010 to $15.530, which is a 72.36% increase.