Mizuho raises HubSpot stock price target to $900, maintains Outperform

On Thursday, Mizuho (NYSE:MFG) Securities showed confidence in HubSpot Inc (NYSE: NYSE:HUBS), raising its price target to $900 from the previous $775 while keeping an Outperform rating on the stock. The adjustment follows HubSpot’s robust fourth-quarter performance, which exhibited a 20% year-over-year constant currency revenue growth, surpassing consensus expectations by 4%. With an impressive gross profit margin of 84.66% and a strong revenue CAGR of 33% over the past five years, the company’s fundamental strength is evident. The company’s guidance for 2025 also indicates revenue growth slightly above consensus despite anticipated foreign exchange headwinds. According to InvestingPro data, the stock is currently trading near its 52-week high of $811.79, reflecting strong market confidence.

HubSpot’s first-quarter revenue guidance projects a 15% year-over-year increase in constant currency terms, modestly outpacing the consensus forecast of 14% growth. This outlook accounts for additional headwinds, including impacts from Clearbit and the Leap Year. For the full year of 2025, HubSpot anticipates a 1-2 percentage point boost in growth from its new pricing model, with Net Revenue Retention (NRR) expected to expand by 2 points year-over-year. InvestingPro analysis indicates the stock may be overvalued at current levels, with 12 additional exclusive ProTips available for subscribers to make informed investment decisions.

The company’s management has observed an improving demand environment in the second half of 2024, with customers showing a greater openness to discussing growth initiatives. However, they also noted that buying decisions have not significantly shifted, reflecting a value-conscious mindset among clients. Despite these challenges, Mizuho remains optimistic about HubSpot’s prospects for sustained growth and margin improvement.

The positive outlook is underpinned by HubSpot’s strategic initiatives, including its bimodal strategy, the adoption of multiple hubs, momentum in artificial intelligence, a new seat-based pricing model, and increased traction in the upmarket segment. These factors contribute to Mizuho’s decision to reiterate its Outperform rating and elevate the price target for HubSpot stock.

In other recent news, HubSpot has been the subject of several notable changes in analysts’ ratings and price targets. Piper Sandler raised the target for HubSpot stock to $808, maintaining a neutral rating. The firm’s optimism stems from the potential of artificial intelligence (AI) to enhance multi-cloud platforms and indications of growth potential in the latter part of 2025.

Goldman Sachs reduced its price target for HubSpot from $900 to $783, while maintaining a buy rating. The firm highlighted HubSpot’s consistent growth drivers, including strong customer additions, increased market share, and effective cross-selling of modules to its existing customer base.

KeyBanc Capital Markets upgraded HubSpot’s stock rating from Sector Weight to Overweight, setting a price target of $920. The firm cited HubSpot as a "premier smid-cap growth asset" in a market that favors small to mid-cap growth stocks.

Canaccord Genuity increased the price target on HubSpot to $900 from the previous $710, reiterating a buy rating. The firm noted the company’s solid performance in its recent quarterly financial results, with a 20% growth in fourth-quarter revenue on a constant currency basis.

Lastly, JPMorgan updated its outlook on HubSpot, raising the price target to $850 from the previous $725 while maintaining an Overweight rating. The firm highlighted HubSpot’s stable demand environment and an uptick in activity towards the year’s end.

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