HubSpot initiated with a Buy at Citi

Citi initiated coverage of HubSpot with a Buy rating and $695 price target. The analyst sees the front-office application software category as bifurcated between established seat-based models that are still feeling the effects of pandemic-era over-expansion and new challengers that are closer to enabling the purchase or customer interaction. Citi views HubSpot as a core holding with its “unique” small business acquisition and upsell motion still in the early innings with potential to expand upmarket. The firm’s total addressable market analysis suggest significant growth runway still lies ahead for the company.