HubSpot stock price target lowered to $600 by BMO Capital on solid results

Investing.com - BMO Capital has lowered its price target on HubSpot Inc (NYSE:HUBS) to $600 from $650 while maintaining an Outperform rating on the marketing software company. According to InvestingPro data, the company currently trades near $493, with analyst targets ranging from $593 to $910, suggesting significant upside potential despite recent price pressure.

The firm acknowledged that HubSpot delivered "a solid quarter and guide across all metrics" despite facing "many cross currents in application software." The company’s performance is backed by impressive gross margins of 84.5% and strong revenue growth of 19% year-over-year.

BMO Capital highlighted the upcoming September Inbound event in San Francisco, suggesting it "likely takes on more significance than past years" as both customers and investors assess relevant technology trends.

The analyst noted that while "the construct of HUBS’ offering will change," the company’s "embedded processes and data will enable HUBS to remain an important partner for the SMB market segment."

Despite the price target reduction, BMO Capital maintained its positive outlook on HubSpot with the Outperform rating, indicating continued confidence in the company’s position in the small and medium business software market.

In other recent news, HubSpot Inc. reported strong financial results for the second quarter of 2025, with earnings per share (EPS) of $2.23, surpassing the forecast of $2.12. The company’s revenue reached $760.9 million, exceeding expectations by approximately 2.91%. Piper Sandler upgraded HubSpot’s stock rating from Neutral to Overweight, raising its price target to $675.00 due to signs of growth recovery. Meanwhile, Needham reiterated its Buy rating with a price target of $900.00, highlighting HubSpot’s solid Q2 performance. Wolfe Research maintained an Outperform rating and a $655.00 price target, noting the company’s successful addressing of AI-related concerns. UBS, however, lowered its price target to $700 from $820, citing valuation concerns amid broader negative sentiment around AI-related SaaS companies. Despite these differing perspectives, HubSpot’s recent earnings have generally exceeded analyst expectations. These developments underscore the varied analyst outlooks on HubSpot’s future performance.

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