In a report released today, Joshua Reilly from Needham maintained a Buy rating on HubSpot, with a price target of $900.00.
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Joshua Reilly has given his Buy rating due to a combination of factors including HubSpot’s strong performance in the second quarter, where the company exceeded revenue expectations by 300 basis points. This success is attributed to the normalization of seat expansions and upgrades, as customers have adapted to the new pricing model and the removal of seat minimums, which has resulted in healthier upgrade patterns. Additionally, the introduction of a credit system for agent usage has been well-received, with an increasing number of customers utilizing agents.
Reilly also notes that the company’s conservative guidance for FY25, despite a significant increase in revenue, suggests potential for further growth. The $44 million increase in guidance reflects only a portion of the Q2 beat, with the remainder attributed to foreign exchange tailwinds. Moreover, HubSpot’s momentum is expected to continue into the second half of the year, as macroeconomic challenges have become less significant and the company’s growth is outpacing its competitors.
According to TipRanks, Reilly is a 3-star analyst with an average return of 2.3% and a 43.48% success rate. Reilly covers the Technology sector, focusing on stocks such as Clear Secure, ZoomInfo Technologies, and HubSpot.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $775.00 price target.