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Investing.com - RBC Capital has reiterated its Outperform rating and $800.00 price target on HubSpot Inc (NYSE:HUBS), currently trading at $460.27 with a market capitalization of $24.3 billion, following the company’s Analyst Day.
RBC expressed increased confidence in HubSpot’s ability to drive sustainable growth through its hybrid monetization strategy and accelerating artificial intelligence adoption. The company’s hybrid approach combines core seats and credits, while also focusing on multi-hub adoption, supported by impressive gross profit margins of 84.55%. According to InvestingPro, 20 analysts have recently revised their earnings estimates upward, suggesting growing optimism about the company’s prospects.
HubSpot’s AI initiatives are gaining momentum, with more than 5,000 Customer Agent customers and 65% resolution rates. This AI traction represents a significant growth driver for the company moving forward, as evidenced by its strong revenue growth of 18.95% over the last twelve months.
For fiscal year 2025, HubSpot has provided guidance of $3.1 billion in revenue, representing 17% growth on a constant currency basis, along with operating margins of 18.5%. The company has set longer-term margin targets of 20-22% in 2027 and 25% beyond that timeframe. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, with analysts maintaining a strong buy consensus.
Preliminary partner checks have been generally positive, with partners expressing enthusiasm about HubSpot’s AI roadmaps and the ease of agent deployment, though macroeconomic conditions and gross margin investments remain near-term considerations. The company maintains a strong financial position, with InvestingPro data showing more cash than debt on its balance sheet and liquid assets exceeding short-term obligations.
In other recent news, HubSpot Inc has seen a series of analyst ratings reaffirmed, emphasizing its growth strategies and AI capabilities. Piper Sandler reiterated an Overweight rating with a price target of $675, highlighting new growth vectors such as Smart CRM and AI consumption credits, which could significantly increase the company’s paid seats attach rate. KeyBanc also maintained an Overweight rating with a $775 price target, noting HubSpot’s new phase of monetizing AI by charging for usage beyond initial credits. Mizuho kept its Outperform rating and $700 target, praising the introduction of Loop marketing and over 200 new features aimed at sustainable growth and customer value scaling. Needham reaffirmed a Buy rating with a $900 price target after attending a company event, expressing positive views on product innovation despite stable spending trends. Additionally, Raymond James maintained its Outperform rating and $655 target, focusing on HubSpot’s "the loop" approach to adapt to changing search dynamics and enhance marketing personalization. These developments reflect a strong analyst consensus on HubSpot’s strategic direction and innovation.
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