Roth Capital Lifts Upwork Inc. (UPWK)’s Price Target To $22, Maintains Buy Rating After Strong Q3 Results

Core Insights - Upwork Inc. is recognized as one of the 13 most undervalued stocks under $20, with Roth Capital raising its price target to $22 from $19 while maintaining a Buy rating [1][2] Financial Performance - Upwork reported a record quarterly revenue of $201.7 million and adjusted EBITDA of $59.6 million for Q3 fiscal 2025, with net income at $29.3 million, reflecting a 6% year-over-year increase [2] - The company experienced a return to gross services volume (GSV) growth after five quarters of challenges, attributed to a 45% year-over-year increase in clients participating in AI projects [2][3] Guidance and Outlook - Following the strong Q3 results, Upwork raised its full-year revenue guidance to between $782 million and $787 million, and adjusted EBITDA guidance to a range of $222 million to $225 million [4] - The company expressed confidence in achieving its long-term goal of an adjusted EBITDA margin of 35% [4] Analyst Commentary - Roth Capital highlighted Upwork's revenue and EBITDA beats during Q3, noting that the raised revenue guidance for Q4 indicates expected growth surpassing several Wall Street estimates, while the EBITDA guidance aligns with consensus projections [5]