BTIG downgrades Upwork with fundamentals ‘primed to take another leg down’

As previously reported, BTIG downgraded Upwork (UPWK) to Neutral from Buy with no price target. The firm credits management for effectively managing the P&L, noting that FY25 EBITDA expectations are up even as GSV expectations have fallen about 12% on lackluster demand trends. However, the firm believes “now is a good time to move to the sidelines as fundamentals look primed to take another leg down,” the analyst tells investors. Upwork already trades at a half-turn premium to peer Fiverr (FVRR) on EV/EBITDA, adding to the firm’s view that multiple expansion will be difficult when its main comparable trades at a discount, says the analyst, who adds that an 8-9x EBITDA multiple implies the stock should trade in the $11-$13 range.