Upwork (NASDAQ:UPWK) shares gained 10% after Jefferies upgraded from Hold to Buy.
Analysts cited expectations for accelerated revenue growth in 2024 as the economy stabilizes and business confidence improves.
Upwork operates a platform that connects workers with employers, aligning with the ongoing shift in labor towards flexible, highly skilled talent that can be managed remotely.
Analysts also raised the price target for Upwork shares to $20 from $13.
Analysts designated UPWK as a “top small-cap recovery play.”
“UPWK has built the leading AI/ML-enhanced B2B marketplace that is benefiting from the secular shift in labor to more flexible, highly skilled talent that can be managed remotely,” analysts said in a note.