BMO Capital analyst Keith Bachman has maintained their bullish stance on HUBS stock, giving a Buy rating on October 21.
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Keith Bachman has given his Buy rating due to a combination of factors including HubSpot’s consistent ability to exceed billing estimates, which suggests strong near-term growth potential. Despite lowering the target price due to concerns about front office growth and the impact of generative AI, Bachman maintains an optimistic outlook on HubSpot’s valuation, believing that solid quarterly performance can drive the stock higher.
Furthermore, Bachman highlights the improvement in small and medium-sized business (SMB) economic activity, which correlates with potential upside in HubSpot’s billing and revenue growth. The company’s strong integrated marketing platform, expanding customer base, and opportunities for product expansion and upmarket growth are seen as drivers for sustainable revenue growth, supported by advancements in AI. Additionally, Bachman notes the large, under-penetrated global total addressable market (TAM) as a significant opportunity for HubSpot.
In another report released on October 21, Stifel Nicolaus also maintained a Buy rating on the stock with a $600.00 price target.