HubSpot price target raised to $725 from $650 at Oppenheimer

Oppenheimer analyst Ken Wong raised the firm’s price target on HubSpot to $725 from $650 and keeps an Outperform rating on the shares. The firm notes HubSpot delivered another quarter of outperformance, with Q4 ex-Fx billings and revenue growth topping Street estimates. Oppenheimer was surprised to also see strong down-market momentum extend into the enterprise heavy Q4 with record net customer adds. Management expects FY24 EBIT margin to expand from 14% in the first half of the year to mid- to high teens in the second half. The strong quarter, stable KPIs, widening product funnel, and new pricing model crystallize the firm’s belief that HubSpot represents the best combination of growth and profitability across its coverage.