Needham adds HubSpot to Conviction List, removes Zuora

Needham analyst Joshua Reilly lowered the firm’s price target on HubSpot (HUBS) to $380 from $500 and keeps a Buy rating on the shares after taking over coverage of the name. The analyst also added adding HubSpot to the Needham’s Conviction List, while Zuora (ZUO). Reilly expects HubSpot to gain market share due to its "highly efficient" go-to-market effort combined with organic product development. This should result in "strong customer satisfaction and a structurally higher gross dollar retention in the high 80%s," Reilly tells investors in a research note. In the near-term, HubSpot faces macro and currency headwinds, but the company should "recovery quickly when the economy strengthens," says the analyst.