Macquarie Initiates Outperform Rating for HubSpot with $730 Target

Macquarie has initiated coverage on HubSpot (NYSE:HUBS) with an 'Outperform' rating and a target price of $730, indicating a potential upside of around 20%. The firm highlights HubSpot's rapid growth in the customer relationship management (CRM) sector, particularly among businesses with 2 to 2,000 employees, and anticipates significant revenue growth driven by improvements in net expansions, a revised pricing model, and a focus on acquiring larger clients. Despite the positive outlook, Macquarie warns of macroeconomic risks that could hinder new customer acquisition and increase attrition in small and medium-sized businesses. The company's stock has shown impressive growth, with a 21.07% revenue increase over the last year, although it has faced volatility, losing over 10% year-to-date. Analysts predict FY25 revenue will reach $3.01 billion, representing a 14.5% year-on-year growth. Overall, Macquarie believes that HubSpot's strong fundamentals will support long-term upside despite potential economic challenges.