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Investing.com - UBS upgraded Upwork Inc. (NASDAQ:UPWK) from Neutral to Buy and set a price target of $21.00, representing significant upside from the current price of $16.12. According to InvestingPro analysis, UPWK appears undervalued, with analyst targets ranging from $15 to $27.
The upgrade comes as UBS analyst Joshua Chan noted improved web traffic data in recent months and an ongoing shift toward higher-value services at the freelance marketplace platform.
UBS believes Upwork is positioned to return to positive Gross Services Value (GSV) growth over the next two quarters, which would mark an inflection point after five consecutive quarters of declines.
The firm’s 2026 estimated EBITDA projection for Upwork stands approximately 3% above consensus, reflecting confidence in the company’s growth trajectory.
UBS also highlighted Upwork’s improved free cash flow, which represents approximately a 9% yield, and noted the company is reducing share count for the first time in its public company history through buybacks, strengthening its high-teens return on invested capital profile.
In other recent news, Upwork Inc. has seen several notable developments. The company reported a strong third-quarter performance, prompting Canaccord Genuity to raise its price target for Upwork to $22 while maintaining a Buy rating. Citizens JMP also increased its price target to $27, citing the potential of Upwork’s new enterprise platform, Lifted, to enhance its competitive edge in the staffing industry. Meanwhile, UBS adjusted its price target to $21, highlighting an anticipated inflection point in Gross Services Value after a period of decline. JMP Securities reiterated its Market Outperform rating with a $20 price target, emphasizing positive catalysts for growth. Additionally, Upwork’s board authorized a new $100 million share repurchase program, which is the third such initiative since November 2023. This program allows for flexibility in execution through various transaction methods. These recent developments reflect Upwork’s strategic initiatives and market positioning.
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