Upwork Inc. (UPWK) PT Lowered to $11 at Citi

Citi analyst Ronald Josey lowered the price target on Upwork Inc. (NASDAQ: UPWK) to $11.00 (from $13.00) while maintaining a Neutral rating.

The analyst comments "We are updating our Upwork model and lowering our projections following a more challenging macro-environment in 2Q that began in May and is likely to continue through 2H24. While the net result is more limited visibility in the NT as clients seeking work declined 6% Q/Q in 2Q despite strength in 1Q, we were encouraged with adoption of newer products on the MP. We highlight AI, whereby AI GSV +67% Y/Y, Value Added Services, whereby ads & monetization revenue +75% Y/Y & take-rates +30 bps Q/Q, and Enterprise, whereby it added 46 new logos (a recent high). This as EBITDA margins expand. That said, we look for macro headwinds to normalize and GSV to return to sustained growth before becoming more positive on shares; we maintain our Neutral / HR rating & lower our TP to $11 (from $13)."

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