Upland Software price target lowered to $3 from $5 at Canaccord

Canaccord analyst David Hynes lowered the firm’s price target on Upland Software (UPLD) to $3 from $5 and keeps a Buy rating on the shares. Upland’s Q4 results came in largely at the mid-point of guidance ranges. FCF outperformed, driven by strong collections, which drove full year FCF to $24.4M. Although this quarter wasn’t great, but it doesn’t really alter the thesis or intermediate-term trajectory of the business. In our view, upwards of two-thirds of Upland’s business, most of which is AI-enabled at this point, has system of record or intelligence infrastructure-like characteristics that helps create a defensible moat.