Sam Boughedda

Investing.com — Analysts downgraded shares of Texas-based Upland Software Inc After it announced third quarter earnings, which were below expectations in revenue and disappointing on the financial markets (NASDAQ: sales growth. 

Shares fell 24% and slipped to $25.56 due to negative investor reactions. 

Analysts at Jefferies as well Craig-Hallum both downgraded the stock in light of Q3 earnings. 

Brent Thill from Jefferies gave the stock a “hold” rating. This is a change from buy. The price target was also lowered to $30 from $50. Thill stated that sales growth was 3% lower than the Street and that it was due to a decrease in volume-based marketing activity as well as limited logo traffic. Thill also pointed out that Upland was not delivering on its top line for the third consecutive year. 

Craig-Hallum analyst Jeff Van Rhee said that Upland had made “very uncharacteristic mistakes” and that it has been difficult to restructure as expected. Rhee said that the weakening retention could make it more difficult to fix. Rhee decided to downgrade the stock from buy to hold, and halve the price target from $64 to $32.