HubSpot stock rating reiterated at Buy by Canaccord Genuity

Investing.com - Canaccord Genuity has reiterated its Buy rating on HubSpot Inc (NYSE:HUBS) with a price target of $700.00. According to InvestingPro data, the stock has seen 20 analysts revise their earnings upwards for the upcoming period, suggesting growing confidence in the company’s prospects.

The research firm maintains its positive outlook on the customer relationship management software company despite noting that HubSpot’s long-term margin target of 25% is "not particularly compelling" for investors focused on terminal cash generation potential. However, the company already demonstrates impressive gross profit margins of 84.55%, according to InvestingPro data.

Canaccord believes HubSpot’s actual margin target is likely higher than stated, though this wasn’t confirmed during a recent event, meaning the stock will continue to be valued primarily on revenue and growth metrics.

The firm points out that while HubSpot shares "aren’t statistically cheap," they are "as cheap as they’ve been in a while," presenting what they consider a buying opportunity similar to other software names like Atlassian (NASDAQ:TEAM) and Monday.com (NASDAQ:MNDY).

Canaccord expects limited multiple compression from current levels, suggesting the stock "should work with growth" that is "potentially improving," which the firm considers sufficient to support its Buy rating. This aligns with InvestingPro’s overall Financial Health rating of "GOOD" and expectations for positive net income growth this year.

In other recent news, HubSpot Inc has received continued positive attention from multiple analyst firms following its Analyst Day and INBOUND user conference. Truist Securities reiterated its Buy rating with a price target of $675, highlighting HubSpot’s new Loop playbook designed for the AI era and several product updates. RBC Capital maintained an Outperform rating and set a price target of $800, expressing confidence in HubSpot’s hybrid monetization strategy and AI adoption. Piper Sandler also reiterated an Overweight rating, noting the potential for growth through new core seat personas and AI consumption credits. KeyBanc maintained an Overweight rating with a $775 price target, emphasizing HubSpot’s evolving AI monetization strategy. Lastly, Mizuho reiterated an Outperform rating and a $700 price target, citing HubSpot’s introduction of Loop marketing and over 200 new features. These developments underscore the company’s focus on AI and sustainable growth strategies.

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