William Blair analyst Arjun Bhatia has reiterated their bullish stance on HUBS stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors, primarily focusing on HubSpot’s impressive quarterly performance and optimistic future outlook. The company reported a strong 20% constant-currency revenue growth, surpassing the expected 15%, and it provided a full-year guidance that was also ahead of market expectations. Additionally, HubSpot’s net retention rate improved, and the company experienced stable customer growth, which reflects positively on its business health.
Moreover, Bhatia notes HubSpot’s progress in its upmarket strategy, highlighting increased multihub adoption and enhanced partner involvement as key drivers of growth. The introduction of a new pricing model and advancements in AI initiatives are expected to further enhance customer engagement and product adoption. Despite some investment-related constraints on margin expansion in the short term, HubSpot remains committed to achieving its long-term operating margin targets. These factors, combined with HubSpot’s valuation compared to its peers, underpin Bhatia’s confidence in the company’s future performance.
In another report released today, KeyBanc also upgraded the stock to a Buy with a $920.00 price target.