HubSpot (HUBS) Receives Revised Price Target from Wells Fargo: $675.00 USD, Down 3.57%

Wells Fargo analyst Michael Turrin has revised HubSpot's (HUBS) price target to $675.00, down 3.57% from $700.00. The firm maintains its "Overweight" rating, indicating potential upside. The average 1-year target price from 32 analysts is $753.88, implying a 23.82% upside from the current price. GuruFocus estimates a GF Value of $758.24, suggesting a 24.54% upside.

Wells Fargo analyst Michael Turrin has revised HubSpot's (HUBS) price target to $675.00, a decrease of 3.57% from the previous $700.00. Despite maintaining an "Overweight" rating, the firm acknowledges increasing competitive pressures that may affect HubSpot's share performance and growth outlook in the near term. However, Wells Fargo remains optimistic about HubSpot's long-term strategic positioning and ability to navigate these challenges [1].

The average 1-year target price from 32 analysts stands at $753.88, indicating a 23.71% upside from the current price of $609.40. GuruFocus estimates a GF Value of $758.24, suggesting a 24.42% upside from the current price [1].

HubSpot reported an 18% year-over-year revenue growth in constant currency for Q1 2025, adding over 10,000 net new customers and bringing the total to over 258,000 globally. The company also announced a $500 million share repurchase program, signaling confidence in its business and growth opportunities. Additionally, HubSpot's AI adoption is accelerating, with Copilot user engagement more than doubling from 270,000 in Q4 to over 660,000 in Q1 [2].

However, the company faced some challenges, including a 2% decrease in average subscription revenue per customer and a 2-point drop in net revenue retention. The macroeconomic environment remains uncertain, and net customer additions are expected to moderate in the coming quarters. Despite these challenges, HubSpot's AI-first strategy and expanding AI capabilities are expected to drive future growth [2].

HubSpot recently launched its first CRM deep research connector with ChatGPT, aiming to provide a comprehensive view of the customer journey and give HubSpot customers a competitive edge. This integration seeks to facilitate the application of powerful AI research and analysis to customer data and context [3].

In summary, Wells Fargo's revised price target for HubSpot reflects a cautious outlook due to competitive pressures. However, the firm maintains a positive long-term view, supported by HubSpot's strong revenue growth and AI capabilities. Investors should closely monitor HubSpot's performance as it navigates the current economic landscape and continues to innovate with AI.

References:
[1] https://www.gurufocus.com/news/2914782/wells-fargo-adjusts-hubspot-hubs-price-target-amid-competition-concerns-hubs-stock-news
[2] https://www.investing.com/news/analyst-ratings/cantor-fitzgerald-initiates-hubspot-stock-with-overweight-rating-93CH-4077806
[3] https://futurecio.tech/hubspot-launches-first-crm-deep-research-connector-with-chatgpt/