Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - UBS raised its price target on Upwork Inc. (NASDAQ:UPWK) to $21.00 from $16.00 on Tuesday, while maintaining a Neutral rating on the freelance marketplace operator. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $15 to $24.
The investment firm cited expectations that Upwork is approaching an inflection point in Gross Services Value (GSV) after five consecutive quarters of declines. UBS noted web traffic declines are moderating, showing the best comparison since late 2023, alongside continued improvement in annual spend per buyer. The company’s strong financial health is reflected in its impressive 77.88% gross profit margin and healthy current ratio of 3.36x.
UBS revised its forecasts to incorporate flat GSV in the second half of 2025, an improvement from its previous projection of a 1-2% decline. This adjustment follows Upwork’s Q2 performance, which showed a 1% GSV decline, and sets the stage for a potential return to GSV growth in 2026.
The firm suggested Upwork could potentially achieve GSV growth as early as Q3 or Q4 of 2025 if performance exceeds current expectations. UBS indicated that GSV stabilization represents a key milestone that could reduce concerns about AI headwinds that have affected the stock.
Despite Upwork shares rising 42% since Q2 earnings in anticipation of this inflection point, UBS maintained its Neutral rating, noting that the recent rally appears to already price in the expected return to GSV stability. The stock has delivered an impressive 83.05% return over the past year, and InvestingPro subscribers can access 12 additional exclusive tips and comprehensive analysis through the Pro Research Report.
In other recent news, Upwork Inc. reported its second-quarter 2025 earnings, surpassing expectations with earnings per share of $0.35, beating the forecast of $0.27. The company’s revenue reached a record $194.9 million, exceeding the projected $187.56 million. Following these results, Goldman Sachs adjusted its price target for Upwork to $24, down from $25, while maintaining a Buy rating, citing the positive impact of the company’s AI features on client activity. Meanwhile, JMP Securities reiterated its Market Outperform rating with a $20 price target, highlighting ongoing catalysts for growth. In a move to enhance shareholder value, Upwork authorized an additional $100 million share repurchase program. Furthermore, the company announced the appointment of Anthony Kappus as its first chief operating officer, effective September 2. These developments reflect Upwork’s strategic initiatives and financial performance amid a dynamic market environment.
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