Needham analyst Scott Berg downgraded Upland Software to Hold from Buy with no price target. The company is pivoting toward more organic growth and sun-setting aging applications, but while the general strategy change is a positive, it brings a combination of lower organic revenue and a growth investment injection that compresses margins, the analyst tells investors in a research note. The firm adds that even if the strategy shift is successful, any material sales productivity improvements are several quarters away.
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Read More on UPLD:
- Truist cuts Upland Software to Hold on execution risk, spending on growth plan
- Upland Software downgraded to Hold from Buy at Truist
- Upland Software sees FY23 revenue $288M-$312M, consensus $311.74M
- Upland Software sees Q1 revenue $72M-$78M, consensus $76.85M
- Upland Software reports Q4 adjusted EPS 37c, consensus 39c