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Investing.com -- In a note Friday, BTIG upgraded Booking Holdings (NASDAQ:BKNG) to Buy with a price target of $5,500, citing improving earnings visibility and an attractive valuation.
At the same time, the firm downgraded Upwork (NASDAQ:UPWK) to Neutral, pointing to rising risks and limited upside potential.
BTIG raised Booking to Buy, saying it sees "visibility into a healthy 2Q" and that "FX puts upward pressure on full-year numbers, despite all of the macro malaise."
The firm believes the company’s mid-teens EPS growth is sustainable and highlighted "under-appreciated opportunities as it continues to push in alternative accommodations and Connected Trip."
The stock also trades at a "~20% PE multiple discount to large cap Internet comps," which BTIG sees as a tactical opportunity to buy a "high-quality category leader."
For Upwork, BTIG downgraded the stock, citing concerns about the company’s international exposure, AI-driven job displacement, and weaker demand trends.
While BTIG credited management for "effectively managing the P&L", it warned that "fundamentals look primed to take another leg down."
The firm noted that Upwork’s Gross Services Volume (GSV) could fall by "6-7% to $3.7B in a plausible post-tariff scenario" and that the stock’s valuation already reflects its potential upside.
"We expect the market will be reluctant to give UPWK more than an 8-9x EBITDA multiple given topline headwinds and AI overhang," BTIG said.
Given these challenges, BTIG now sees Upwork’s stock as "fairly valued" in the $11-$13 range, leading to the downgrade.