Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Scotiabank raised its price target on Upwork Inc. (NASDAQ:UPWK) to $17.00 from $15.00 on Tuesday, while maintaining a Sector Perform rating on the freelance marketplace operator. According to InvestingPro data, Upwork appears undervalued with analysts setting a consensus high target of $27.00, suggesting significant potential upside from its current price of $15.63.
The company reported revenue of $202 million for its latest quarter, representing 4% year-over-year growth and exceeding analyst expectations by 4%. Adjusted EBITDA reached $60 million, approximately 20% above consensus estimates, with margins hitting a record 30%. This performance aligns with Upwork’s impressive 77.9% gross profit margin and overall revenue of $772.9 million for the last twelve months.
Earnings per share came in at $0.36, beating Street forecasts by seven cents. The company also raised its full-year 2025 revenue and EBITDA guidance modestly, while fourth-quarter guidance exceeded market expectations. Upwork’s diluted EPS for the last twelve months stands at $1.72, contributing to its attractive P/E ratio of 9.34.
Despite the financial outperformance, Upwork’s underlying growth metrics showed weakness, with Gross Services Value (GSV) growing just 2% year-over-year and active clients declining by 7%. AI-related GSV showed stronger performance, increasing 53% compared to the prior year.
Scotiabank noted that while Upwork’s cost discipline was "impressive," sustainable growth remained "elusive," with management continuing to prioritize efficiency over expansion as evidenced by reduced marketing spending and increased general and administrative expenses. InvestingPro analysis shows Upwork holds more cash than debt and maintains a healthy current ratio of 3.36, supporting this efficiency-focused approach. Discover more insights in Upwork’s comprehensive Pro Research Report, available with an InvestingPro subscription.
In other recent news, Upwork Inc. reported its third-quarter 2025 financial results, surpassing analysts’ expectations with earnings per share of $0.36, compared to the forecast of $0.28. The company’s revenue reached $201.7 million, exceeding the anticipated $193.35 million. This strong performance was highlighted by Goldman Sachs, which raised its price target on Upwork to $25 from $24, maintaining a Buy rating. The firm attributed the outperformance to contributions from AI categories and the adoption of Upwork Business Plus.
Canaccord Genuity also reiterated its Buy rating with a $22 price target, noting that Upwork’s Gross Service Value (GSV) returned to growth, driven by AI investments. Jefferies raised its price target to $22, citing a positive turning point with GSV growth turning positive after several quarters of decline. RBC Capital increased its price target to $21, recognizing AI as a growing tailwind for the company. These developments indicate a positive shift for Upwork, with analysts showing confidence in its future prospects.
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