Upwork (UPWK – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Bernie McTernan from Needham reiterated a Buy rating on the stock and has a $19.00 price target.
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Bernie McTernan has given his Buy rating due to a combination of factors, including Upwork’s better-than-expected first-quarter results and strategic investments in areas they can control. Despite a challenging macroeconomic environment impacting the company’s gross services volume, Upwork has shown sequential improvement, partly due to product enhancements like Uma that boost marketplace engagement.
McTernan acknowledges that the significant first-quarter performance was largely due to reduced sales and marketing expenses, which included some one-time benefits. However, he remains optimistic about Upwork’s potential to capture a large total addressable market by making strategic investments and utilizing AI on its platform. This, combined with the stock’s attractive valuation, presents a favorable risk-reward scenario for investors.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $19.00 price target.