Street Calls of the Week
Investing.com - HubSpot Inc (NYSE:HUBS), a software company with an impressive 84.55% gross profit margin and market capitalization of $24.6 billion, is showing strong business momentum according to insights from a Raymond James webinar with an Elite HubSpot Partner. InvestingPro analysis suggests the stock is currently undervalued, with several positive indicators pointing to continued growth potential.
The partner reported record deal activity for HubSpot in the third quarter of 2025, including the highest quarterly net new business on record for the company.
A significant deal closed in July with a multinational UK customer, while demand trends remained healthy throughout Europe, according to the partner’s feedback shared by Raymond James.
The partner also expressed optimism about the fourth-quarter pipeline, which is tracking above the initial plan for the year, suggesting continued momentum for HubSpot.
On the competitive front, the partner observed aggressive pricing from Salesforce, but indicated that while AI adoption remains in early stages across enterprise customers, AI startups and LLM applications are unlikely to significantly impact HubSpot’s larger customers, though they could affect the SMB segment. For deeper insights into HubSpot’s competitive position and financial health (rated as GOOD by InvestingPro), subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s market position and growth prospects.
In other recent news, HubSpot Inc has received significant attention from analysts following its recent events. Truist Securities reiterated its Buy rating with a $675 price target, highlighting positive feedback from the company’s annual INBOUND customer conference in San Francisco. The firm noted that demand is starting to recover after earlier slowdowns in decision-making. Similarly, BMO Capital maintained its Outperform rating with a $600 price target, addressing investor concerns about artificial intelligence’s impact on the front office software industry. Canaccord Genuity also reiterated its Buy rating, setting a price target of $700, while expressing a positive outlook despite some concerns about HubSpot’s long-term margin targets. RBC Capital reaffirmed its Outperform rating with an $800 price target, citing confidence in HubSpot’s growth potential through its hybrid monetization strategy and AI adoption. These developments indicate a continued positive sentiment among analysts regarding HubSpot’s future prospects.
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