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Investing.com - Canaccord Genuity raised its price target on Upwork Inc. (NASDAQ:UPWK) to $24.00 from $22.00 on Wednesday, while maintaining a Buy rating on the freelance marketplace platform. This aligns with the broader analyst sentiment, as Upwork has an overall Buy consensus recommendation with a high target of $28, according to InvestingPro data.
The price target increase follows Canaccord’s attendance at Upwork’s Investor Day, where the company addressed investor concerns about artificial intelligence potentially pressuring the job market and freelancer demand. According to Canaccord, Upwork provided evidence that its AI-native marketplace initiatives are driving incremental Gross Services Value (GSV) gains. InvestingPro data shows that 8 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in Upwork’s strategy.
Upwork management introduced fiscal year 2026 guidance calling for mid-single-digit GSV growth and mid-to-high-single-digit revenue growth. The company also projected GSV growth acceleration in 2027 and 2028, even without improvement in the macroeconomic environment. This growth outlook builds upon Upwork’s current revenue of $780.86 million and impressive gross profit margin of 77.8%.
Canaccord highlighted Upwork’s recent acquisitions of Bubty and Ascen, which it believes will help unlock enterprise market opportunities. The firm noted growing demand for AI-specialized talent as artificial intelligence becomes increasingly embedded into daily workflows.
While Canaccord increased its estimates for Upwork, it remains "modestly more conservative than management’s outlook given broader macro and the rapidly evolving AI landscape," according to its research note.
In other recent news, Upwork Inc. reported revenue of $202 million for its latest quarter, marking a 4% year-over-year increase and surpassing analyst expectations by the same percentage. The company also achieved an Adjusted EBITDA of $60 million, which was about 20% above consensus estimates, with margins reaching a record 30%. During its Investor Day, Upwork revealed ambitious growth projections, aiming for annualized growth of 7-9% for Gross Services Value (GSV), 13-15% for revenue, and approximately 20% for Adjusted EBITDA through 2028. These targets suggest potential 2028 revenue of $1.13-$1.20 billion and Adjusted EBITDA of $384-$389 million, with margins between 32.5-34.0%.
Goldman Sachs responded by raising its price target for Upwork to $28, maintaining a Buy rating, as the company outlined its strategy to tap into the $1.3 trillion global digital knowledge work market. UBS also increased its price target to $23, following Upwork’s return to positive GSV growth, which exceeded expectations. Scotiabank adjusted its price target to $17, citing Upwork’s profitability beat. Upwork’s strategy includes focusing on AI, small and medium business growth, and expanding enterprise solutions to capture a larger market share.
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