Argus Lowers Price Target on Hubspot to $650, Keeps Buy Rating

Argus lowers its PT on Hubspot (HUBS) to $650 from $865, keeping a Buy rating. The firm is experiencing traction from go-to-market and pricing changes, and is a sustained double-digit revenue and earnings growth compounder. Hubspot is a developer and marketer of software products for inbound marketing, customer service, and sales, offering a unified platform for customer-facing teams.

July 02, 2025

Wall Street analysts have continued to express confidence in HubSpot (HUBS), despite recent selloff pressure. Argus, a leading financial services firm, has recently lowered its price target on HubSpot (HUBS) to $650 from $865, while maintaining a Buy rating on the shares [3].

The price revision follows HubSpot's Q2 report, which highlighted the company's strong performance and growth trajectory. HubSpot reported $761 million in revenue, an 18% year-over-year increase in constant currency, and exceeded estimates by $22 million. The company also recorded 20% billings growth and increased its net revenue retention (NRR) to 103%, while maintaining steady gross margins at 84.55% and delivering a 17% operating margin [2].

Argus analysts attribute the firm's sustained double-digit revenue and earnings growth to its go-to-market and pricing changes. The company's unified platform, which integrates marketing, sales, and customer service solutions, has gained traction among mid-market business-to-business (B2B) companies. HubSpot's AI-powered engagement hubs, such as Sales Hub, Marketing Hub, and Service Hub, are driving customer engagement and revenue growth [3].

Despite the strong fundamentals, HubSpot's stock has faced significant selling pressure this year, with shares down roughly 20% since the earnings release and about 35% year-to-date. The broader market backdrop and investor rotation into large-cap technology names have contributed to the selloff. However, analysts see the recent pullback as a buying opportunity, with shares trading at a discount compared to historical levels and many peers with similar growth rates [4].

For long-term investors, the current selloff presents a chance to accumulate shares at a lower valuation. HubSpot's strong balance sheet, with nearly $2 billion in cash and no debt, provides flexibility for future growth and investments in AI tools. The company is also approaching the "Rule of 40," a benchmark used by investors to gauge the balance between growth and profitability [4].

In conclusion, while the recent selloff has created uncertainty for investors, HubSpot's strong fundamentals and growth prospects continue to attract analyst attention. Argus's price target reduction and Buy rating reflect the firm's belief in HubSpot's long-term potential, despite the current market challenges.

References:
[1] https://www.tipranks.com/stocks/hubs/technical-analysis
[2] https://finance.yahoo.com/news/macquarie-reduces-pt-hubspot-inc-172907220.html
[3] https://ca.finance.yahoo.com/news/argus-lowers-pt-hubspot-hubs-035702978.html
[4] https://www.citybiz.co/article/733534/hubspot-selloff-seen-as-buying-opportunity-despite-strong-growth/