Following reports that Google (GOOGL) has been talking with advisors in recent days regarding a potential offer for HubSpot (HUBS), Evercore ISI tells investors in a research note that while a reported combination makes sense at a 30K foot level, there would be a lot of hurdles for this to come together. The firm wonders why Google wouldn’t first spin off Google Cloud Platform and then buy HubSpot to create a standalone software business that doesn’t have to deal with the regulatory issues that overhang Google’s consumer businesses, and while Evercore “gets” the broader rationale, finds it “odd” that HubSpot would be willing to see their business subsumed into an acquirer where it would be essentially lost in a sea of businesses. Evercore ISI made no change to its In Line rating or $560 price target on HubSpot.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on HUBS:
- HubSpot has market opportunity to reach $5B in annual revenue, says Jefferies
- HubSpot initiated with an Underweight at KeyBanc
- Jefferies software analyst to hold an analyst/industry conference call
- HubSpot price target raised to $710 from $648 at Macquarie
- HubSpot price target raised to $720 from $604 at Argus
