Analysts Raise Price Targets for HubSpot After Earnings Beat
Strong Earnings Performance by HubSpot
HubSpot, Inc. (NYSE: HUBS) recently reported impressive fourth-quarter results that beat analysts' expectations, contributing to a boost in its stock predictions. The company achieved quarterly earnings of $2.32 per share, surpassing the consensus estimate of $2.19. Additionally, HubSpot's quarterly revenue reached $703.17 million, exceeding the $673.32 million analysts had anticipated.
CEO Comments on Transformation
Yamini Rangan, the CEO of HubSpot, expressed optimism about the company's performance, stating, "We had a solid finish to 2024, highlighting our leadership as a platform company. 2024 was a transformative year for HubSpot as we reimagined our product, our platform, and company with AI. I'm excited by the progress we've made in embedding AI across our hubs and the value it's driving for customers." These comments reflect HubSpot's commitment to leveraging artificial intelligence to enhance its offerings.
Outlook for 2025
Looking ahead, HubSpot forecasts first-quarter revenue between $697 million and $699 million, slightly below the $705.71 million estimate. The anticipated earnings per share (EPS) for this period is set between $1.74 and $1.76, also trailing the $2.00 consensus estimate. Despite this conservative outlook, the strong performance in 2024 has analysts keeping a close eye on the stock.
Stock Performance and Price Target Adjustments
Following the earnings announcement, HubSpot shares experienced a modest gain of 0.1%, closing at $785.50. This performance prompted several analysts to adjust their price targets for the stock:
Analyst Insights and Revisions
- Oppenheimer: Ken Wong maintained an Outperform rating and increased the price target from $850 to $900.
- Piper Sandler: Brent Bracelin kept a Neutral rating and raised the target from $640 to $808.
- Canaccord Genuity: David Hynes maintained a Buy rating, raising the target from $710 to $900.
- Morgan Stanley: Keith Weiss retained an Overweight rating with an increased target from $835 to $898.
- Barclays: Ryan Macwilliams maintained an Equal-Weight rating, raising the target from $725 to $815.
- Needham: Joshua Reilly maintained a Buy rating and lifted the target from $730 to $900.
- Truist Securities: Terry Tillman reiterated his Buy rating with a new target of $900, up from $750.
Considering an Investment in HUBS?
If you're contemplating investing in HUBS stock, the consensus among analysts appears favorable, with multiple firms boosting their price targets significantly. The firm's focus on integrating AI into their platforms seems promising, potentially enhancing user experience and company growth.
Frequently Asked Questions
What were HubSpot's earnings per share for the fourth quarter?
HubSpot reported earnings of $2.32 per share, exceeding analysts' expectations.
How much revenue did HubSpot generate in the fourth quarter?
The company generated $703.17 million in revenue, surpassing the consensus estimate of $673.32 million.
What is the future revenue forecast for HubSpot?
HubSpot expects first-quarter revenue between $697 million and $699 million for the next fiscal period.
How did analysts change their price targets after the earnings report?
Many analysts raised their price targets significantly, with some going as high as $900 post-earnings announcement.
What is the current sentiment towards HubSpot stock?
The sentiment is generally positive, with several analysts maintaining or increasing their ratings for the stock.
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