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 that highlight HubSpot’s positive trajectory. The company reported a strong third-quarter performance with revenue growth surpassing management’s expectations, driven by seat expansion, momentum in the upmarket segment, and an increase in multi-hub deals. Additionally, HubSpot has raised its full-year revenue guidance, indicating confidence in its continued growth potential.
Despite a slight miss in billings and a minor deceleration in growth, these factors are largely attributed to strategic shifts in sales focus and a temporary headwind from legacy operations. The market’s reaction to these elements seems disproportionate, especially considering HubSpot’s premium valuation and the potential for future upside. Overall, Bhatia sees the company’s strategic initiatives and market position as strong indicators for continued success, justifying a Buy rating.
According to TipRanks, Bhatia is a 2-star analyst with an average return of 0.9% and a 42.69% success rate. Bhatia covers the Technology sector, focusing on stocks such as Atlassian, Sprout Social, and InterDigital.
In another report released today, Mizuho Securities also maintained a Buy rating on the stock with a $550.00 price target.