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 $20.00 price target.
Bernie McTernan has given his Buy rating due to a combination of factors including a significant improvement in Upwork’s margin profile and an increase in adjusted EBITDA estimates. Upwork’s recent fourth-quarter results surpassed expectations, prompting an upward revision in the price target to $20. The company’s management has notably turned around its margin profile, elevating the adjusted EBITDA margin from a negative 5% in 2022 to an anticipated positive 17% in 2024. This striking margin enhancement has been a key driver behind the positive rating, despite a slowdown in revenue growth.
The outlook for revenue growth may be moderating, but the analyst expects the growth in 2024 to be chiefly driven by an expansion in the take-rate along with modest Gross Services Volume (GSV) growth. In the interim, as Upwork awaits a more favorable macroeconomic environment, it is investing in artificial intelligence to bolster the health and efficiency of its marketplace. These strategic moves, aimed at reinforcing the platform’s capabilities and financial health, align with the positive sentiment expressed in the Buy rating.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $17.00 price target.
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Upwork (UPWK) Company Description:
Upwork, Inc. operates an online marketplace that enables businesses to find, hire, and pay freelancers for short-term and longer-term projects. It provides managed services and marketplace offerings such as Upwork Standard, Upwork Enterprise, and Upwork Payroll. The company was founded in December 2013 and is headquartered in Mountain View, CA.
Read More on UPWK:
- Upwork Reports Fourth Quarter and Full Year 2023 Financial Results
- UPWK Upcoming Earnings Report: What to Expect?
- Upwork price target raised to $20 from $19 at Goldman Sachs
- Upwork to Report Fourth Quarter and Full Year 2023 Financial Results on February 14, 2024
- Biden set to ‘unveil contractor rule set to upend gig economy,’ Reuters says
