William Blair analyst Arjun Bhatia has maintained 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, including HubSpot’s impressive second-quarter performance, which exceeded expectations with an 18% revenue growth in constant currency. This growth was fueled by strong platform performance, increased AI adoption, and a rise in multi-hub deals, alongside a healthy momentum in both upmarket and down-market segments. Additionally, HubSpot’s management raised its full-year guidance, reflecting confidence in the company’s ability to maintain its growth trajectory despite macroeconomic uncertainties.
Furthermore, HubSpot’s strategic initiatives, such as the introduction of new pricing models and AI innovations, have contributed to an increase in net revenue retention to 103%. The company’s valuation, trading at 7.1 times the 2026 revenue estimate, aligns with its growth peers, yet its track record of organic innovation and steady execution suggests a potential for premium valuation. Bhatia believes that HubSpot is well-positioned for long-term growth, with opportunities to capture more market share and benefit from advancements in AI, reinforcing the Buy rating.
Bhatia covers the Technology sector, focusing on stocks such as InterDigital, Wix, and HubSpot. According to TipRanks, Bhatia has an average return of 2.8% and a 44.96% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $775.00 price target.