Is COUP Stock a Buy After 30% Plunge? 3 Analysts Weigh In on Coupa Software.

Coupa Software (NASDAQ:COUP) stock is down nearly 30% today after the San Mateo, California-based company reported disappointing financial results.

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COUP stock, which finished trading yesterday at $89.82, was already down 45% this year prior to today’s plunge. In the last six months, the share price has declined 63%. Today’s move lower comes after the company, which specializes in business spending management, reported earnings that shared weak guidance.

The software maker announced that its earnings rose 12% to 19 cents per share. Its revenue climbed 18% to $193.3 million. Analysts had expected Coupa Software to report earnings of 5 cents on revenue of $186.2 million.

However, going forward, Coupa Software forecast earnings this year of $191 million, below the average analyst estimate of $196 million.

So, given the current drop in COUP stock, are the shares a buy? Here are three price predictions from analysts.

COUP Stock Price Predictions

  • Wells Fargo has a “hold” rating on COUP stock and an $80 price target, which would be 10% lower than yesterday’s closing share price.
  • RBC Capital also has a “hold” rating on the shares and a $65 price target, which implies 28% downside.
  • Piper Sandler also has a “hold” rating on COUP stock and a $70 price target, which would be 22% lower than current levels.

What’s Next for Coupa Software

Even before yesterday’s disastrous fourth-quarter earnings report, analysts seemed to be urging investors to take a cautious approach with Coupa Software stock, with most forecasting that the share price would decline. Those analyst ratings are likely to be revised lower following the company’s latest financial disclosure and forward guidance. Investors should be careful.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


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