Stock market today: S&P 500 falls as job cuts stoke economic fears, tech stutters
Investing.com - Canaccord Genuity raised its price target on Upwork Inc. (NASDAQ:UPWK) to $22.00 from $20.00 on Wednesday, while maintaining a Buy rating on the freelance marketplace operator. According to InvestingPro data, Upwork boasts impressive gross profit margins of 78% and trades at a P/E ratio of 10.7x, suggesting the stock may be undervalued at current levels.
The price target increase follows a strong third-quarter performance, with Upwork shares climbing approximately 38% during the period, despite broader challenges in the staffing industry. InvestingPro data shows the company has delivered an exceptional 80% return over the past year, with particularly strong momentum in recent months.
Canaccord noted that Upwork demonstrated relative strength in its core marketplace offering during the second quarter, driven by momentum in AI solutions, Business Plus, and advertising and monetization products.
The research firm highlighted that Upwork appears to be ahead of schedule in its growth trajectory, with management indicating in early September that the company is poised to show Gross Services Value (GSV) growth now, rather than waiting until 2026 as previously forecast.
Canaccord also pointed to Upwork’s strategic acquisitions of Bubty and Ascen as providing tools to unlock the Enterprise Total Addressable Market (TAM), suggesting fundamentals may be at an inflection point, while viewing the current valuation as "still reasonable" despite shares rallying 62% since early August.
In other recent news, Upwork Inc. has announced several significant developments. The company reported that its board of directors has approved a new $100 million share repurchase program, marking the third such authorization since November 2023. This program allows for repurchases through open market transactions or privately negotiated deals, with no set expiration date. Additionally, Upwork has appointed Anthony Kappus as its first chief operating officer, effective September 2. Kappus, formerly of Redfin, will oversee various departments, including legal and customer support.
On the financial front, Citizens JMP raised its price target for Upwork to $27, citing the potential of the company’s new enterprise platform, Lifted, to expand its offerings. UBS also increased its price target to $21, noting that Upwork is nearing an inflection point in Gross Services Value (GSV) after a period of decline. Meanwhile, JMP Securities reiterated a Market Outperform rating and maintained a $20 price target, highlighting ongoing catalysts for revenue growth. These developments reflect Upwork’s strategic initiatives and market positioning.
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