Upwork stock price target raised to $23 from $21 at UBS on positive GSV growth

Investing.com - UBS raised its price target on Upwork Inc. (NASDAQ:UPWK) to $23.00 from $21.00 while maintaining a Buy rating, following the company’s return to positive Gross Services Value (GSV) growth. This target aligns with InvestingPro data showing Upwork is currently trading below its Fair Value, with analysts setting targets as high as $27.

Upwork shares jumped 15% in after-hours trading on Tuesday after the company reported GSV growth of 2%, exceeding UBS’s near-flat estimate, while delivering strong margins and free cash flow. The company boasts impressive gross profit margins of 77.8% and a healthy free cash flow yield of approximately 10%, according to InvestingPro data.

The freelance marketplace platform also signaled continued GSV growth momentum into 2026, with expectations for acceleration, which UBS views as a key milestone that adds conviction to the company’s financial algorithm.

UBS now models 2% GSV growth in 2026 for Upwork, though notes potential upside to estimates if the acceleration trend continues throughout the year.

The firm highlighted Upwork’s strong free cash flow yield of approximately 7-8%, which enables the company to compound value through share buybacks, along with GSV momentum and Upwork’s new enterprise strategy as catalysts supporting the constructive outlook.

In other recent news, Upwork Inc. reported a notable third-quarter performance with revenue reaching $202 million, marking a 4% year-over-year growth and surpassing analyst expectations by 4%. The company’s adjusted EBITDA was $60 million, approximately 20% above consensus estimates, with margins hitting a record 30%. Goldman Sachs raised its price target for Upwork to $25 from $24, highlighting the company’s strong performance exceeding guidance on revenue, adjusted EBITDA, and adjusted EPS. Jefferies also increased its price target to $22, noting a positive turning point with Gross Service Value (GSV) growth turning positive at 2% year-over-year. RBC Capital raised its price target to $21, pointing out that artificial intelligence is becoming a beneficial factor for Upwork, with management projecting further acceleration into 2026. Canaccord Genuity reiterated its Buy rating with a $22 price target, citing strong third-quarter results driven by AI feature investments. Scotiabank adjusted its price target to $17, maintaining a Sector Perform rating after Upwork’s profitability beat expectations. These developments reflect a series of positive analyst adjustments and strong financial performance for Upwork.

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