HubSpot price target lowered to $381 from $463 at Bernstein

Bernstein lowered the firm’s price target on HubSpot (HUBS) to $381 from $463 and keeps an Outperform rating on the shares. The firm notes the company delivered solid results for Q1, but provided underwhelming guidance and commentary for the rest of the year, driving underperformance after-hours. Management also called out AI-products related pricing changes, longer trial periods, sales cycle elongation and sales training efforts – which delay some of the revenue upside. So, the beat and raise Bernstein was expecting likely gets pushed out at least by one to two quarters. While this is disappointing for near-term results, the firm understands the need to experiment and fine-tune the strategy in the nascent and competitive AI market.