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On Thursday, TD Cowen analyst Derrick Wood increased the price target on HubSpot Inc (NYSE: NYSE:HUBS) shares to $800 from the previous $725, while maintaining a Hold rating on the company’s stock. The stock, currently trading at $785.50, has shown remarkable momentum with a 62% gain over the past six months. Wood acknowledged HubSpot’s solid performance in the fourth quarter, noting that the company achieved a 20% constant currency (cc) growth, surpassing the guidance of 15% cc. This growth was attributed to the company’s strength in the upmarket segment. According to InvestingPro data, HubSpot maintains an impressive 84.66% gross profit margin, with revenue growing at 21.78% over the last twelve months. For deeper insights into HubSpot’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The analyst pointed out that while HubSpot’s full-year 2025 estimated growth of 16% cc fell slightly short of both TD Cowen’s and the buy-side’s expectations by 1 percentage point, the company’s operational margin was also approximately 50 basis points below the consensus estimates. Despite these figures, Wood highlighted positive aspects such as seat expansions and successful efforts to mitigate downselling, which have contributed to an increase in HubSpot’s net revenue retention (NRR).
However, Wood expressed some concerns, specifically regarding the slower pace of SKU upgrades. He believes that while the company is managing to expand its customer base and retain existing clients, the rate at which customers are upgrading their service packages is not meeting expectations.
In his analysis, Wood concluded that HubSpot’s valuation appears to be full, trading at approximately 12 times its expected enterprise value to calendar year 2026 sales, given the company’s mid-teens growth outlook. This assessment led to the decision to adjust the price target to $800, reflecting a more measured outlook on the stock’s potential for appreciation.
In other recent news, HubSpot Inc. has been the subject of several analyst upgrades following a robust earnings report. RBC Capital Markets raised its price target for HubSpot to $950, citing the company’s strong retention metrics and effective use of artificial intelligence. Similarly, Truist Securities lifted its target to $900, focusing on HubSpot’s resilient execution and potential avenues for growth, despite foreign exchange headwinds.
Needham also increased its price target to $900, noting the company’s potential to boost subscription growth earlier than many of its SaaS counterparts. BMO Capital Markets revised its target for HubSpot to $885, highlighting the company’s potential to capitalize on artificial intelligence opportunities. Lastly, Mizuho (NYSE:MFG) Securities raised its price target to $900, maintaining an Outperform rating on the stock, and emphasizing HubSpot’s strategic initiatives, including its new seat-based pricing model and increased traction in the upmarket segment.
These are recent developments that have been positively received by investors, demonstrating the market’s confidence in HubSpot’s growth trajectory and strategic positioning.
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