Upwork downgraded to Hold from Buy at Canaccord

Canaccord downgraded Upwork (UPWK) to Hold from Buy with a price target of $10, down from $22. The firm views the company’s Q1 report as mixed, with softer gross services volume. Upwork customers cited mounting macro pressures along with accelerated AI adoption, the analyst tells investors in a research note. Canaccord says that while Upwork’s trends have stabilized since early April, it is at lower growth rates more consistent with the past two years than the higher trajectory framed at the November investor day. The firm cites deterioration in marketplace trends despite the recent stabilization, reduced visibility into the trajectory of a marketplace recovery and the pace of AI-driven displacement for the downgrade.