HubSpot price target raised to $645 from $535 at Piper Sandler

Piper Sandler analyst Brent Bracelin raised the firm’s price target on HubSpot (HUBS) to $645 from $535 and keeps an Overweight rating on the shares. The firm notes HubSpot remains one of the higher quality growth stocks on its coverage list that has consistently balanced growth and profitability with a 3-year average Rule 40 ratio of 41%. That said, the 16% growth outlook and 19% free cash flow margin target suggests R40 could drop to 35% as growth moderates faster than free cash flow margins expand. Q1 results were healthy, evident by the 2.3% beat with subscription growth slowing to 18% cc, Piper adds.