Home Finance HubSpot’s (HUBS) Growth Narrative Still Intact Despite Weak Q1, Jefferies Analyst Says

HubSpot’s (HUBS) Growth Narrative Still Intact Despite Weak Q1, Jefferies Analyst Says

0


HubSpot Inc. (NYSE:HUBS) is one of the 11 best debt-free stocks to invest in right now. In a report published in early June, Jefferies analyst Samad Samana maintained a Buy rating on HubSpot and reaffirmed his $700 price target, despite recent stock weakness. The stock had declined roughly 10% following the company’s Q1 2025 results, which Samana attributed to investor concerns around the company’s forward guidance. The analyst noted that the exit growth rate implied from the guidance was lower than previously anticipated, and slightly soured the investor sentiment.

HubSpot’s (HUBS) Growth Narrative Still Intact Despite Weak Q1, Jefferies Analyst Says

A marketing manager looking at the data dashboard of a marketing automation software showing successful campaign results.

Samana acknowledged that current valuation levels appear to reflect these concerns. However, he believes that a return to 20% revenue growth could help restore investor confidence and reestablish a valuation premium for the stock.

To assess near-term momentum, the analyst collaborated with a HubSpot partner to gain a deeper understanding of recent demand dynamics and evaluate competitive pressure from Salesforce. According to the analyst, feedback from the partner was constructive, suggesting that demand has increased since the quarter began and that broader macroeconomic headwinds may be easing.

Samana concludes that if HubSpot delivers a solid Q2, the company could regain its growth narrative and shift investor sentiment in a more positive direction.

HubSpot Inc. (NYSE:HUBS) is a provider of cloud-based software that helps businesses attract, engage, and retain customers.

While we acknowledge the potential of HUBS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Harvard University Stock Portfolio: Top 10 Stock Picks and 20 Undervalued Momentum stocks that are Taking Off.

Disclosure: None. This article is originally published at Insider Monkey.

LEAVE A REPLY

Please enter your comment!
Please enter your name here