Analyst David Hynes of Canaccord Genuity maintained a Buy rating on Upland Software (UPLD – Research Report), with a price target of $5.00.
David Hynes’s rating is based on a combination of factors that highlight Upland Software’s strategic progress and financial improvements. The company reported steady fourth-quarter results, with recurring revenue surpassing guidance expectations and adjusted EBITDA aligning with projections. Upland’s core organic growth showed signs of recovery, moving from previous declines to stability, and net revenue retention improved, indicating better customer retention due to a strategic focus on key products.
Moreover, Upland’s management provided an optimistic outlook for 2025, projecting a 2.5% increase in core organic growth and a significant expansion of EBITDA margins by approximately 400 basis points. The company is also actively reducing its debt, using cash generation to pay down up to $2 million per month. Upland’s recent divestment of non-core assets aligns with its strategy to concentrate on core strengths, further enhancing its financial position. These strategic initiatives, coupled with a favorable valuation, underpin Hynes’s Buy rating for Upland Software.
According to TipRanks, Hynes is a 3-star analyst with an average return of 1.7% and a 46.18% success rate. Hynes covers the Technology sector, focusing on stocks such as ServiceNow, Atlassian, and Workday.