Scotiabank has revised its price target for HubSpot (HUBS, Financial), reducing it from $900 to $750 while maintaining an Outperform rating on the company's shares. This adjustment comes as part of a broader reevaluation of price targets across the U.S. Software sector, influenced by a recent downturn in the industry.
The bank's analysts are closely monitoring the potential impact of tariffs on the sector, which they anticipate becoming more evident in the second quarter and throughout the second half of the year. Despite these challenges, Scotiabank's confidence in HubSpot's performance remains strong, as reflected in their continued positive rating for the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for HubSpot Inc (HUBS, Financial) is $785.72 with a high estimate of $980.00 and a low estimate of $535.00. The average target implies an upside of 31.58% from the current price of $597.13. More detailed estimate data can be found on the HubSpot Inc (HUBS) Forecast page.
Based on the consensus recommendation from 35 brokerage firms, HubSpot Inc's (HUBS, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for HubSpot Inc (HUBS, Financial) in one year is $724.18, suggesting a upside of 21.28% from the current price of $597.132. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the HubSpot Inc (HUBS) Summary page.
HUBS Key Business Developments
Release Date: February 12, 2025
- AI-Powered Meetings: Over 10,000 meetings generated for the sales team in Q4.
- Agent.ai User Growth: User base grew over 10 times in 6 months, from 50,000 to over 500,000 users.
- Agent Builders: Empowered over 5,000 builders to create agents with a low-code tool.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- HubSpot Inc (HUBS, Financial) reported a 21% year-over-year revenue growth for the full year 2024, highlighting strong financial performance.
- The company expanded its customer base to 248,000 globally, with over 9,800 net customer additions in Q4.
- HubSpot's AI initiatives are gaining momentum, with AI-powered communications generating over 10,000 meetings for the sales team in Q4.
- The company has successfully integrated AI across its platform, enhancing customer experience and operational efficiency.
- HubSpot's partner ecosystem is thriving, with co-selling increasing by 68% year-over-year, indicating strong collaboration and market penetration.
Negative Points
- Average subscription revenue per customer decreased by 1% year-over-year in constant currency, indicating potential pricing pressure.
- The company anticipates a seasonal downtick in net revenue retention in Q1 2025, suggesting potential challenges in maintaining customer engagement.
- HubSpot faces a 200 basis point foreign exchange headwind to 2025 revenue growth due to the strengthening US dollar.
- The transition to a new seat-based pricing model may create short-term disruptions as existing customers adjust.
- Despite AI advancements, the company has not assumed any direct agent monetization in its 2025 guidance, which could impact revenue projections.
