Upwork Inc. (UPWK) PT Lowered to $23 at UBS Following Narrower Q4 Beats Than Normal

UBS analyst Joshua Chan lowered the price target on Upwork Inc. (NASDAQ: UPWK) to $23.00 (from $26.00) while maintaining a Buy rating.

The analyst commented, "This was a tough one. UPWK shares shown down 20%+ in after-hours after the company delivered much narrower revenue/EBITDA beats than normal in Q4, and also guided Q1 softer despite full-year 2026 guidance very much in line with expectations. Because Q4 underwhelmed, conventional confidence to view Q1 guidance as conservative is now impaired, in our view, with the intact full-year guide now implying a bigger ramp through the year. Not a lot changes with full-year EBITDA estimates (trimmed -3%) but a quarter like this immediately after the bullish analyst day, it will likely take some time to restore investor confidence. There’s enough to like here to stay patient, including GSV actually beating, a strong implied H2 outlook, and continued good FCF (now yielding 10%+). That said, we fully acknowledge the near-term gap against a ramp through the year."

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