HubSpot’s Strong Q1 Performance and Strategic Growth Justify Buy Rating

Morgan Stanley analyst Elizabeth Porter has maintained their bullish stance on HUBS stock, giving a Buy rating today.

Elizabeth Porter’s rating is based on HubSpot’s impressive performance in the first quarter, which exceeded expectations in terms of revenue and billings growth. The company reported an 18% year-over-year growth in constant currency for both metrics, showcasing its ability to maintain strong momentum. This solid execution is further supported by the rapid expansion of multi-hub adoption, with a significant portion of annual recurring revenue coming from deals involving four or more hubs.
Additionally, HubSpot’s success in securing large deals and its growing traction in AI applications contribute to the confidence in its sustained growth. The company’s strategic focus on expanding beyond traditional use cases and its ability to navigate a challenging macroeconomic environment highlight its potential for continued success. These factors, combined with a favorable foreign exchange impact, reinforce Porter’s positive outlook and justify the Buy rating.

Porter covers the Technology sector, focusing on stocks such as Autodesk, HubSpot, and Amplitude. According to TipRanks, Porter has an average return of -0.1% and a 45.57% success rate on recommended stocks.

In another report released today, Barclays also maintained a Buy rating on the stock with a $745.00 price target.