TD Cowen analyst Derrick Wood maintained a Hold rating on HubSpot yesterday and set a price target of $600.00.
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Derrick Wood has given his Hold rating due to a combination of factors impacting HubSpot’s current market position. The company reported an 18% constant currency growth, slightly above its guidance, and raised its full-year outlook modestly. However, the growth was not as strong as previous quarters, and there are ongoing concerns about the impact of AI on traditional SEO practices, which are crucial for B2B marketing.
HubSpot is adapting to these changes by evolving its product offerings and integrating AI capabilities, such as new connectors for ChatGPT and Claude. Despite these efforts, uncertainties around AI disruptions and investor concerns about seat growth are affecting the company’s valuation. With a relatively high valuation multiple and limited upside potential, Wood maintains a Hold rating, awaiting further clarity on the company’s strategic direction at the upcoming Analyst Day.
According to TipRanks, Wood is a 5-star analyst with an average return of 12.0% and a 54.73% success rate. Wood covers the Technology sector, focusing on stocks such as Oracle, Microsoft, and Salesforce.
In another report released on August 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $528.00 price target.