Canaccord Genuity analyst Maria Ripps maintained a Buy rating on Upwork (UPWK – Research Report) yesterday and set a price target of $20.00.
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Maria Ripps’s rating is based on several positive trends observed in Upwork’s recent performance and strategic initiatives. Despite the broader industry challenges, Upwork outperformed expectations in its Q4 results with notable revenue and profitability figures, showcasing strong execution in an otherwise soft macroeconomic environment. The company has managed to increase the gross services value per active client sequentially, indicating enhanced client spending and engagement.
Moreover, Upwork has seen a significant increase in AI-related projects among its clients, reflecting its innovations like the Uma product, which is increasingly being adopted by new clients. The company’s Enterprise segment has also shown encouraging signs with accelerated revenue growth and the successful launch of the Business Plus plan. Despite a projected macroeconomic headwind in 2025, Upwork’s focus on improving platform features, optimizing costs, and selectively investing in growth initiatives supports a promising outlook, leading to the recommendation for a Buy rating.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $25.00 price target.