Engine Capital letter highlights Upwork’s inexpensive valuation, says BTIG

BTIG analyst Marvin Fong keeps a Buy rating and $14 price target on Upwork after the company confirmed an activist letter from Engine Capital. It’s hard to argue that Upwork couldn’t benefit from enhancing site functionality, streamlining managerial layers, optimizing expenses, buying back shares, destaggering the Board and adding executives with staffing experience, the analyst tells investors in a research note. The firm adds however that the letter also highlights the stock’s inexpensive valuation and opportunities for value creation, noting that the situation is also “positive” given the company’s substantial cash flow and a healthy balance sheet.