BofA sees ‘attractive entry point’ with HubSpot deal overhang removed

BofA notes HubSpot (HUBS) closed down 12% yesterday following a Bloomberg article that said acquisition talks by Google (GOOGL) have ended and points out that shares were trading at a level consistent with the afterhours price following the disappointing revenue outlook on the Q1 earnings call on May 8. The takeout premium is now out of the stock, “removing the potential negative overhang,” says the analyst, who believes that the company is in the early stage of consolidating the vast SMB segment of the customer relationship management market and views the pullback as one that presents a “particularly attractive entry point.” BofA keeps a Buy rating and $690 price target on HubSpot shares.