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Investing.com - Needham maintained its Buy rating and $900.00 price target on HubSpot Inc (NYSE:HUBS) following the company’s customer event in San Francisco. This aligns with the broader analyst consensus, as InvestingPro data shows 20 analysts have recently revised their earnings expectations upward, with price targets ranging from $577 to $910.
The research firm attended HubSpot’s event in person on Wednesday and came away "incrementally positive" on product innovation. Partner and customer discussions indicated spending trends remain unchanged, with no clear signs of acceleration expected in the second half of 2025. Despite the cautious outlook, HubSpot maintains impressive gross profit margins of 84.5% and has achieved 19% year-over-year revenue growth.
Needham highlighted a key conference theme centered on artificial intelligence’s impact on HubSpot customers and their ability to drive top-of-funnel activity. As customers increasingly use generative AI tools for research, traditional search engine optimization has become less important for page rankings.
The firm noted that relevance in generative AI tool results through Answer Engine Optimization (AEO) has become "mission-critical" for driving conversion in what Needham called "the new era of marketing."
HubSpot appears "laser focused" on driving innovation to support customers through this evolving journey, while AI usage is also leading to greater internal efficiency for the company, according to Needham’s analysis. For deeper insights into HubSpot’s AI initiatives and financial health, InvestingPro subscribers can access comprehensive analysis and additional metrics in the Pro Research Report, available exclusively on the platform.
In other recent news, HubSpot has been in the spotlight with several developments. The company unveiled a new marketing strategy called "the Loop," aiming to help marketers navigate the challenges posed by AI and shifting consumer search behaviors. This comes as data indicates that 60% of Google searches now end without clicks, affecting traditional marketing funnels. On the financial side, HubSpot’s recent quarterly performance showed approximately 18% constant currency growth, with new customer additions and average subscription revenue per customer surpassing expectations. As a result, management has slightly raised its outlook for the second half of the year.
In terms of analyst ratings, Bernstein upgraded HubSpot from Market Perform to Outperform, setting a price target of $606.00, citing the company’s consistent market outperformance. Raymond James reiterated its Outperform rating with a $655.00 price target, highlighting HubSpot’s innovative strategies. Meanwhile, Stifel maintained its Buy rating with a $650.00 price target, emphasizing insights from its survey of HubSpot partners. However, TD Cowen adjusted its price target down to $600, maintaining a Hold rating due to the impact of AI search dynamics. These developments reflect a mixed but cautiously optimistic outlook from analysts on HubSpot’s future.
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