Stifel raises HubSpot stock price target to $925, maintains buy rating

On Thursday, Stifel analysts updated their outlook on HubSpot Inc (NYSE: NYSE:HUBS), raising the stock’s price target from the previous $880.00 to a new figure of $925.00. The firm continues to endorse the stock with a Buy rating. The analysts highlighted HubSpot’s strong performance, with InvestingPro data showing impressive revenue growth of 21.07% and industry-leading gross profit margins of 85.03%. The company marked the end of the year with the highest top-line upside despite facing headwinds from foreign exchange rates.

The company’s initial guidance for 2025 fell slightly short of Wall Street expectations regarding revenue and operating income. However, HubSpot’s Net Revenue Retention (NRR) is projected to grow by 2 points over the year. According to InvestingPro analysis, which shows the company maintains a GOOD overall financial health score, Stifel’s analysts emphasized the conservative nature of HubSpot’s guidance philosophy, suggesting that the company’s actual performance may surpass its forecasts.

HubSpot has expressed cautious optimism about the demand environment, noting improvements as customers increasingly focus on growth initiatives. This positive sentiment echoes the company’s stance from the same period last year. The analysts at Stifel believe that HubSpot is well-positioned for a robust 2025, bolstered by strategic moves such as the introduction of a seat-based pricing model, the relaunch of Content Hub, and the integration of Breeze AI functionalities across its product suite.

The analysts concluded their assessment by reiterating their confidence in HubSpot’s trajectory for the coming year. They underscored the company’s strategic initiatives as key drivers for its anticipated strong performance in 2025. The revised price target of $925 reflects Stifel’s expectation of HubSpot’s continued growth and success in the market.

In other recent news, multiple financial firms have revised their price targets for HubSpot Inc, following the company’s strong performance in the fourth quarter. TD Cowen raised its price target to $800, acknowledging HubSpot’s 20% constant currency growth and increased net revenue retention, despite concerns about the slower pace of service package upgrades. Meanwhile, RBC Capital Markets increased its target to $950, citing improvements in small and medium-sized business optimism and HubSpot’s strong retention metrics.

Truist Securities lifted its target to $900, highlighting the company’s resilience amidst foreign exchange headwinds and increased cash flow estimates for FY25. Needham also raised its target to $900, noting HubSpot’s potential to boost subscription growth as the economic cycle begins to shift. However, foreign exchange headwinds are expected to impact fiscal year 2025 guidance.

Finally, BMO Capital Markets revised its target to $885, attributing the company’s success to the continued adoption of its multi-hub offerings, a significant rise in customer numbers, and the potential to capitalize on artificial intelligence opportunities. These adjustments reflect recent developments and the firms’ confidence in HubSpot’s ability to sustain growth.

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