WEBULL

Upwork (UPWK) Valuation Check After Jefferies Preference And Renewed Analyst Optimism

Simply Wall St · 3d ago

Upwork (UPWK) gained attention after Jefferies highlighted the company as a preferred small cap name, citing upbeat analyst commentary and renewed interest in its role connecting businesses and freelancers in the gig and remote work market.

See our latest analysis for Upwork.

The recent Jefferies mention came as Upwork reached a new 52 week high at a share price of $20.62, with a 90 day share price return of 15.45% and a 1 year total shareholder return of 29.04%. This suggests momentum has been building even though the 5 year total shareholder return of a 51.60% decline shows longer term holders have had a tougher run.

If you are looking beyond a single gig economy name, this could be a useful moment to broaden your watchlist with fast growing stocks with high insider ownership.

With shares at $20.62, about 12% below the average analyst target of $23.20 and trading at an estimated 33% discount to intrinsic value, investors may ask whether there is still a buying opportunity here or if the market is already pricing in future growth.

Most Popular Narrative Narrative: 10% Undervalued

Against a last close of $20.62, the most followed narrative points to a fair value of about $22.90, putting its own numbers in the spotlight.

The analysts have a consensus price target of $18.7 for Upwork based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $24.0, and the most bearish reporting a price target of just $15.0.

Read the complete narrative.

Want to see what sits behind that wide target range and higher fair value? Revenue compounding, margin shifts and a future earnings multiple all quietly drive this narrative. The full story joins those moving parts into one valuation arc.

Result: Fair Value of $22.90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to weigh slower client acquisition, as well as the risk that pricing or fee changes unsettle users and weaken the growth and margin story.

Find out about the key risks to this Upwork narrative.

Build Your Own Upwork Narrative

If you see the numbers differently, or simply prefer to test your own assumptions, you can build a full Upwork thesis in just a few minutes, starting with Do it your way.

A great starting point for your Upwork research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

You have seen how one company narrative can shift your perspective, so this is the moment to widen your view and spot other opportunities before they move without you.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.