Cantor Fitzgerald initiates HubSpot stock with overweight rating
Investing.com
Published Jun 03, 2025 07:50AM ET
On Tuesday, Cantor Fitzgerald analysts initiated coverage on HubSpot Inc (NYSE: NYSE:HUBS) stock with an Overweight rating and set a price target of $775. The new target reflects a significant premium over current valuation metrics, with the analysts highlighting HubSpot's strategic positioning within the CRM industry. According to InvestingPro data, the stock currently trades at $592.02, with analyst targets ranging from $645 to $910. InvestingPro's Fair Value analysis suggests the stock is currently overvalued.
The analysts noted that HubSpot is well-positioned to develop the next front office platform, having expanded from marketing into sales, service, content, and commerce. This strategic expansion is seen as a testament to the company's management, which is praised for its methodical approach in building platform breadth and depth. HubSpot's progress in moving upmarket is expected to sustain its mid-to-high teens growth trajectory over the medium term. InvestingPro data supports this outlook, showing impressive revenue growth of 19.17% and industry-leading gross profit margins of 84.83%. Get access to 12 more exclusive InvestingPro Tips about HUBS's financial health and growth prospects.
HubSpot is also making strides in strengthening its partner network, which is accelerating its upmarket traction. The analysts view this development as a critical factor in supporting the company's growth strategy and expanding its market reach.
In addition to its strategic positioning, HubSpot is recognized for its leadership in AI integration. The company's Breeze AI platform is driving higher attach rates for its Content Hub and is anticipated to play a crucial role in enhancing the Service Hub's traction, a key component of HubSpot's future growth plans.
The analysts' price target of $775 represents a valuation of 64x and 62x the company's estimated 2026 earnings per share and free cash flow, respectively, and an enterprise value to 2026 estimated revenue basis of 11.4x. This target is approximately 35% higher than the current industry average, reflecting the analysts' confidence in HubSpot's growth potential and strategic initiatives. For comprehensive valuation analysis and detailed metrics, access the full HUBS Pro Research Report, available exclusively on InvestingPro , along with reports for 1,400+ other US stocks.
In other recent news, HubSpot Inc reported its first-quarter earnings for 2025, revealing a revenue of $714.1 million, which exceeded the consensus estimate of $699.88 million. Despite this revenue beat, the company's guidance for the second quarter and the full year fell short of analyst expectations, causing some concern among investors. Citi analyst Tyler Radke responded by raising HubSpot's price target to $759, maintaining a Buy rating, while RBC Capital Markets reaffirmed an Outperform rating with an $800 price target, highlighting the company's AI strategy as a key differentiator. William Blair also upheld an Outperform rating, emphasizing HubSpot's potential for long-term growth and market leadership. Meanwhile, BMO Capital Markets adjusted its price target slightly to $735 but maintained an Outperform rating, citing the company's strategic approach and AI integration. HubSpot's CEO, Yamini Rangan, expressed confidence in the company's AI-first strategy, despite the mixed analyst reactions. The company announced a $500 million share repurchase program, indicating a commitment to enhancing shareholder value. Investors will be closely monitoring HubSpot's performance as it navigates the current economic landscape and continues to innovate with AI capabilities.
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Written By: Investing.com
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