RBC Capital maintains HubSpot stock with $800 target following earnings

On Friday, RBC Capital Markets reaffirmed their positive stance on HubSpot Inc (NYSE:HUBS), maintaining an Outperform rating and a price target of $800.00. The decision comes after the company reported its latest quarterly results, which, despite being impacted by foreign exchange fluctuations, were described as decent and relatively clean. Currently trading at $591.66, HubSpot’s shares experienced a 5% decline during after-market trading. According to InvestingPro data, analyst consensus remains strongly bullish, with price targets ranging from $610 to $980.

The company’s revenue upside for the quarter did not meet the high expectations set by recent trends, with growth decelerating by 3 points to 18% on a constant currency basis. However, billings exceeded consensus estimates by approximately 5%. InvestingPro data reveals impressive fundamentals, with revenue growing at 19.17% and maintaining exceptional gross profit margins of 84.83%. RBC Capital’s analysts highlighted that while the macroeconomic commentary from the company remained largely the same, there is a growing optimism regarding HubSpot’s prospects in the up-market segment, paired with stable checks in the small and medium-sized business (SMB) sector.

The analysts at RBC Capital expressed confidence in HubSpot’s ability to stand out in the market through a thoughtful artificial intelligence (AI) strategy. They noted that the company continues to innovate and execute effectively. The report suggests that the guidance provided by HubSpot may be on the conservative side, which, in the view of RBC Capital, makes the recent pullback in the company’s shares an attractive buying opportunity.

HubSpot, a leading provider of customer relationship management (CRM) and inbound marketing software, has been actively working on expanding its offerings and enhancing its platform with AI capabilities. This approach is seen as a key factor in the company’s ongoing success and ability to attract and retain customers across various markets. InvestingPro analysis shows the company maintains strong financial health with more cash than debt on its balance sheet and a healthy current ratio of 1.66, supporting its growth initiatives. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial metrics by subscribing to InvestingPro.

Investors and market watchers will be keeping a close eye on HubSpot’s performance in the coming quarters, as the company continues to navigate the challenges and opportunities presented by the current economic landscape. The reaffirmed Outperform rating and $800.00 price target by RBC Capital Markets reflect a vote of confidence in HubSpot’s strategy and market position. While currently showing strong momentum with a 12.47% return over the past year, InvestingPro’s Fair Value analysis suggests the stock may be slightly overvalued at current levels. Discover the complete analysis and detailed valuation metrics in HubSpot’s comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, HubSpot Inc reported first-quarter earnings that exceeded expectations, with revenue reaching $714.1 million compared to the consensus estimate of $699.88 million. Despite this revenue beat, the company’s guidance for the second quarter and full year of 2025 did not meet analyst expectations, leading to mixed reactions from investors. HubSpot anticipates second-quarter revenue between $738 million and $740 million, which is above the expected $725.4 million, but its earnings forecast fell short. For the full year, the company projects revenue of $3.036 billion to $3.044 billion, slightly above the consensus of $2.997 billion.

Analyst reactions varied, with BMO Capital Markets adjusting its price target to $735 while maintaining an Outperform rating, citing a cautious outlook due to potential economic challenges. Piper Sandler raised its price target to $645, maintaining a Neutral rating, and highlighted HubSpot’s strong execution and potential AI opportunities. Needham reiterated its $900 price target with a Hold rating, emphasizing the company’s new credit-based pricing model for Breeze Agents as a key area of interest.

JPMorgan also adjusted its price target to $775 from $850 but maintained an Overweight rating, noting HubSpot’s steady billings growth and positive booking performance. The company’s strategic focus on artificial intelligence and navigating economic uncertainties were highlighted by analysts as factors contributing to its long-term prospects. Despite the mixed guidance, HubSpot’s management expressed confidence in its AI-first strategy and announced a $500 million share repurchase program.

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