BofA Initiates Upwork At Buy On Shift To Remote Workforce

Upwork Inc UPWK is well-positioned to benefit from the pandemic-driven shift to remote teams with and freelancing becoming “an increasingly larger portion of the overall workforce,” according to BofA Securities.

The Upwork Analyst: Nat Schindler initiated coverage of Upwork with a Buy rating and a price target of $65.

The Upwork Thesis: The company is likely to continue gaining share in a massive freelancing market, which is estimated at $1.3 trillion, Schindler said in the initiation note.

“Upwork has driven significant recurring revenue streams from past cohorts, and we see a predictable and growing revenue model going forward with growth levers such as upmarket initiatives, international expansion, new products and long-term margin expansion,” the analyst wrote.

He mentioned five positives for the company:

• Strong client retention due to its high-value proposition
• Enterprise initiatives could drive top-line growth
• The ongoing shift to freelancing
• New products to drive acquisition and expand customer lifetime value
• International expansion opportunity with increasing internet user penetration

UPWK Price Action: Shares of Upwork had risen by 4.53% to $47.10 at the time of publication Friday morning

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