HubSpot price target raised to $603 from $503 at Morgan Stanley

Morgan Stanley raised the firm’s price target on HubSpot to $603 from $503 and keeps an Overweight rating on the shares. While noting that shares have increased nearly 80% year-to-date, the firm says it remains bullish on the long-term opportunity for “both durable revenue and margin expansion,” adding that its deep dive analysis into HubSpot’s positioning in a $41B Total Addressable Market, or TAM, makes the firm “incrementally constructive on HubSpot’s ability to execute on penetrating a large market opportunity.” An increasing prioritization of margin expansion “sets the stage for an accelerating FCF story,” the firm added.