HubSpot stock price target lowered to $650 by KeyBanc on growth concerns

Investing.com - KeyBanc has reduced its price target on HubSpot Inc (NYSE:HUBS) to $650.00 from $775.00 while maintaining an Overweight rating on the stock. The new target still represents a 40% upside from the current price of $464.71, which InvestingPro data suggests is undervalued based on its Fair Value estimate.

The firm cited HubSpot’s persistent 18% constant currency growth rate, which has shown no signs of acceleration. KeyBanc noted this growth figure remained steady in the most recent quarter. This aligns with InvestingPro data showing revenue growth of 18.95% over the last twelve months, supported by impressive gross profit margins of 84.55%.

Despite the price target reduction, KeyBanc observed that HubSpot’s net-new annual recurring revenue (ARR) continues to outpace the company’s overall growth rate, suggesting potential acceleration in 2026 based on mathematical momentum.

The analyst acknowledged a significant shift in market sentiment toward HubSpot compared to when KeyBanc initiated coverage with an Underweight rating last year, questioning where the "Teflon-coated long-term investor base" had gone.

The price target adjustment reflects what KeyBanc described as "current multiple realities" in the market, though the firm maintained its Overweight stance on HubSpot despite what it characterized as "shakier ground."

In other recent news, HubSpot Inc has reported its third-quarter earnings, showcasing a revenue growth of 21% year-over-year, surpassing consensus estimates of 17.5%. The company also achieved a 19% increase in constant currency billings, although this marked a slight deceleration from the previous quarter’s 20% growth. Despite these positive figures, several analyst firms have adjusted their price targets for HubSpot. Needham reduced its target to $700, maintaining a Buy rating, while Oppenheimer lowered its target to $550, still rating the stock as Outperform. Evercore ISI set its target at $500 after noting a lighter-than-expected fourth-quarter guidance. Canaccord Genuity decreased its target to $600, citing growth timing concerns, yet retained a Buy rating. Raymond James also lowered its target to $525, maintaining an Outperform rating, due to a modest shortfall in billings. These developments reflect varied analyst perspectives on HubSpot’s growth trajectory and future performance.

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