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Investing.com — Analysts downgraded shares of Texas-based Upland Software Inc (NASDAQ:UPLD) after it reported third-quarter earnings that missed expectations on revenue and disappointed on sales growth.
Investors have reacted negatively to the report, pushing the shares down 24%, to $25.56.
As a result of the company’s Q3 earnings, analysts at both Jefferies and Craig-Hallum have downgraded the stock.
Jefferies analyst Brent Thill put a hold rating on the stock, down from buy, simultaneously lowering the price target to $30 from $50. Thill cited the company’s sales growth as being 3% below the Street, adding that the miss was driven by a deceleration in volume-based messaging activity and limited net new logo traction. The analyst also noted that it was the third time in a row that Upland had not delivered a beat on the top line.
Jeff Van Rhee, an analyst at Craig-Hallum, said Upland posted a “very uncharacteristic” miss and that restructuring has not gone as planned. Rhee added that that weakening retention may prove more challenging to repair. As a result, Rhee downgraded the stock to hold from buy, halving the price target to $32 from $64.
