HubSpot (NYSE:HUBS) stock is trending higher and has gained nearly 10% in the last two trading days on speculation of a potential deal with Alphabet’s (NASDAQ:GOOGL) Google. HUBS closed about 1.54% higher on Wednesday after CTFN reported that Alphabet could provide a compelling offer to acquire HubSpot.
HubSpot is a customer relationship management (CRM) platform provider. The deal will likely boost Google’s competitive positioning by expanding its products and applications for enterprises.
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bullish on HUBS stock believe that integrating HubSpot’s CRM with Google Workspace will add value and legitimize enterprise SaaS on Google Cloud.
Deal to Face Regulatory Headwinds
While HUBS stock has gained on speculation of a deal with Google, many analysts are concerned about regulatory obstacles. Analysts from RBC Capital, Oppenheimer, and Evercore ISI have voiced apprehensions, predicting regulatory challenges for the transaction.
Last month, RBC Capital analyst Brad Erickson, an analyst ranked among the top 1% of Street stock experts (to watch Erickson’s track record, click here), said that the deal will make Alphabet more competitive against rivals. However, he added that the antitrust scrutiny would be too much for the deal to materialize.
It remains to be seen whether GOOGL will acquire HubSpot. Meanwhile, let’s look at the Street’s forecast for HubSpot and Alphabet stock.
Is HUBS Stock a Buy?
Hubs stock has gained over 27% in one year. Further, Wall Street analysts maintain a bullish outlook on the stock. With 18 Buys, one Hold, and one Sell recommendation, HUBS stock has a Strong Buy consensus rating. The analysts’ average price target for HUBS stock is $677.47, implying a 4.51% upside potential from current levels.
Is Alphabet Stock a Buy, Sell, or Hold?
Alphabet stock has appreciated by over 42% in one year. Despite this notable gain, analysts are bullish about its prospects. Alphabet stock has 32 Buys and five Hold recommendations for a Strong Buy consensus rating.
Analysts’ average price target on GOOGL stock is $197.53, implying 12.30% upside potential from current levels.
