Upland Software (UPLD – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst David Hynes from Canaccord Genuity maintained a Buy rating on the stock and has a $5.00 price target.
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David Hynes has given his Buy rating due to a combination of factors that highlight Upland Software’s promising trajectory. The company has shown steady execution, particularly following the divestiture of its mobile messaging business, which has set the stage for improved organic growth. While core organic growth was flat in Q1, it is anticipated to rise to 2% in Q2 and potentially exceed that in the latter half of 2025, with a target of 4% by 2026. This positive trend is supported by a more centralized digital marketing strategy and the ongoing integration of AI into their products.
Moreover, Upland is experiencing continued improvement in its EBITDA margins, with Q1 adjusted EBITDA margins at 21% and expected to increase to 26% in Q2. This margin expansion is attributed to the company’s strategic focus on high-growth and high-retention business lines, alongside organic improvements. The divestiture of the mobile messaging segment, which had a neutral impact on EBITDA, further enhances margin prospects. As Upland continues to pay down debt and improve product cohesion, the stock presents an intriguing opportunity for investors, especially given its undervalued EV/EBITDA multiple relative to future growth expectations.
According to TipRanks, Hynes is a 2-star analyst with an average return of 0.4% and a 47.99% success rate. Hynes covers the Technology sector, focusing on stocks such as ServiceNow, Jamf Holding, and Procore Technologies.