Piper Sandler upgrades Hubspot to Overweight, raises price target to $675.

Piper Sandler upgrades Hubspot to Overweight, raises price target to $675.

Piper Sandler has upgraded its rating for HubSpot Inc. (NYSE: HUBS) to Overweight, raising the price target to $675. This move comes after the company reported strong financial results for the second quarter of 2025, which exceeded both earnings and revenue expectations.

HubSpot Inc. achieved an earnings per share (EPS) of $2.23, surpassing the forecasted $2.12, and reported revenue of $760.9 million, which was higher than the anticipated $739.35 million. The revenue represented a 19% year-over-year growth, with an operating income of $129 million and a 17% margin, outperforming forecasts by $5 million.

The upgrade from Neutral to Overweight by Piper Sandler reflects the company’s ability to address concerns about AI’s impact on search engine optimization. The firm's strong financial performance and growth stability have led to a more positive outlook among analysts.

HubSpot’s second-quarter performance included a $22 million revenue beat, which contributed to a more positive outlook among analysts. The company’s CRM platform, which includes Marketing Hub, Sales Hub, Service Hub, and Content Management Systems Hub, continues to drive growth and customer satisfaction.

The upgrade by Piper Sandler comes amid broader market challenges and negative sentiment around AI-related software-as-a-service companies. However, HubSpot’s strong performance and improving key performance indicators suggest a resilient position in the market.

The stock has seen a decline of approximately 25% since mid-May, but recent analyst upgrades and positive earnings reports indicate a potential recovery. The company's valuation remains attractive, with analysts expecting it to turn profitable this year.

Reference List:
[1] https://www.investing.com/news/analyst-ratings/hubspot-stock-price-target-lowered-to-700-by-ubs-on-valuation-concerns-93CH-4176098
[2] https://www.marketbeat.com/instant-alerts/filing-cetera-investment-advisers-has-275-million-holdings-in-hubspot-inc-nysehubs-2025-08-07/