Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Goldman Sachs has lowered its price target on Upwork Inc. (NASDAQ:UPWK) to $24.00 from $25.00 while maintaining a Buy rating on the freelance marketplace platform. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 7.88, with analyst targets ranging from $15 to $25.
The adjustment follows Upwork’s Q2 2025 earnings report, which exceeded the company’s guidance ranges for revenue, adjusted EBITDA, and adjusted EPS. Goldman Sachs noted that Upwork’s AI features drove client activity and led to solid performance in spend per active client despite macroeconomic volatility. InvestingPro analysis reveals impressive gross profit margins of 77.88% and a strong financial health score rated as "GREAT."
Upwork reported a 6% year-over-year increase in gross services value per active client, showing acceleration from the previous quarter’s growth rate. The company also achieved an all-time high adjusted EBITDA margin of 29.3%, demonstrating management’s ability to balance long-term growth investments with operating efficiencies.
Goldman Sachs highlighted Upwork’s three-pronged strategy focused on AI deployment, asset monetization, and enterprise adoption. The firm also noted that recent acquisitions are expected to drive incremental transactions and expand the platform’s capabilities.
Upwork’s Q3 2025 guidance prompted Goldman Sachs to make positive revisions to its fiscal year 2025 estimates, despite the slight reduction in price target from $25 to $24.
In other recent news, Upwork Inc. reported its second-quarter 2025 earnings, delivering results that exceeded expectations. The company announced earnings per share of $0.35, which was above the forecasted $0.27, marking a positive surprise of 29.63%. Revenue also surpassed projections, reaching $194.9 million compared to the anticipated $187.56 million. This performance highlights Upwork’s ability to exceed analysts’ estimates, showcasing strong operational results. The earnings report did not include any mention of mergers or acquisitions. Additionally, there were no recent analyst upgrades or downgrades reported for Upwork. These developments provide investors with a clearer view of the company’s financial health and operational efficiency.
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