Truist Securities lifts HubSpot stock target to $900, maintains buy

On Thursday, Truist Securities analyst Terry Tillman updated the price target on HubSpot Inc (NYSE:HUBS) stock, increasing it to $900 from the previous target of $750, while reiterating a Buy rating. Currently trading at $785.50 and near its 52-week high of $811.79, InvestingPro analysis suggests the stock is trading above its Fair Value. Tillman highlighted the company’s strong performance in the fourth quarter, despite facing significant foreign exchange headwinds.

The analyst’s review followed HubSpot’s release of their fourth quarter results, which surpassed expectations on both revenue and earnings. The company reported a 21% year-over-year increase in large deal activity, a 68% rise in co-selling, and a doubling of new enterprise customers for their Service Hub quarter-over-quarter. This performance aligns with HubSpot’s impressive 21.78% revenue growth and industry-leading 84.66% gross margin. InvestingPro subscribers can access 12 additional key insights about HubSpot’s financial health and growth prospects. Additionally, HubSpot showcased positive key performance indicators (KPIs) for its artificial intelligence products.

Tillman noted that the guidance provided by HubSpot suggests a decrease in top-line estimates, attributed to approximately a 200 basis point impact from foreign exchange headwinds, along with a further 100 basis point impact from legacy customer churn related to the Clearbit acquisition for the fiscal year 2025. Despite these challenges, the analyst pointed out that the company’s cash flow estimates for FY25 have increased significantly.

Tillman encouraged investors to look beyond the short-term headwinds and focus on HubSpot’s resilient execution and multiple avenues for growth. The revised price target of $900 reflects Truist Securities’ increased confidence in HubSpot’s ability to sustain durable top-line growth and higher cash flows going forward.

In other recent news, several prominent financial firms have updated their outlook on HubSpot Inc. following the company’s strong fourth-quarter results. Needham analysts have increased their price target on HubSpot shares to $900, maintaining a Buy rating, highlighting the company’s successful return to a pattern of exceeding expectations and potential for future subscription growth. BMO Capital Markets also raised its price target for HubSpot to $885, emphasizing the company’s promising potential to leverage artificial intelligence (AI) opportunities.

Mizuho (NYSE:MFG) Securities showed similar confidence, raising its price target to $900 while maintaining an Outperform rating. The firm noted HubSpot’s robust revenue growth and optimistic projections for 2025, despite anticipated foreign exchange headwinds. Piper Sandler increased the price target to $808, maintaining a Neutral rating, citing the potential for AI to enhance the value of multi-cloud platforms and indications of a growth inflection in the latter part of 2025.

However, Goldman Sachs adjusted its outlook, reducing the stock’s price target from $900.00 to $783.00, while sustaining a bullish 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, despite the lowered price target. These recent developments reflect a generally optimistic view of HubSpot’s financial performance and future prospects.

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