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- Online job marketplace companies Fiverr (NYSE:FVRR) and Upwork (NASDAQ:UPWK) were assumed with Neutral ratings at UBS.
- Amid a “subdued” macro background and the fact that Fiver has placed an emphasis on higher-spend buyers, the company is undergoing a transition, UBS said. As such, the investment firm expects Fiver’s gross merchandise volume to grow in the low-single range for 2024 and 2025. UBS also put a $25 price target on the stock, which is down 15% year-to-date.
- Upwork has recently improved its take rate, which has driven double-digit revenue growth and “significant” margin expansion, despite “flattish” gross service value amid the weak macro background, UBS said.
- While the macro weakness could keep shares range bound in the near-term, the stronger take rate and improving margin profile could make Upwork shares more intriguing on a relative basis, UBS said. UBS has a $12 price target on the stock, which is down 25.5% year-to-date.