Needham & Company Reiterates Buy on HubSpot (HUBS)

Needham & Company reiterated a Buy rating and $65.00 price target on HubSpot Inc (NYSE: HUBS). Needham believes that HUBS’ broad marketing suite is winning within the midmarket segment as these customers actively seek an all-in-one solution due to the lack of resources and personnel to run and integrate multiple applications.

Analyst Scott Berg commented, "Despite roughly flat stock performance in 2016, we believe HUBS' end market demand, execution, and operating model showed continued strength in 2016 and is well positioned to outperform current 2017 estimates. HUBS is a leading provider of marketing and sales solutions for mid-sized customers whose core Inbound Marketing end market remains as strong as ever. Although it trades at a nominal premium to the overall SaaS space (4.9x EV/FY17 revenues vs 4.0x), HUBS continues to trade at a discount (4.9x vs 5.4x) to peers expected to grow FY17 revenues 30%+. We believe HUBS can at a minimum maintain its current valuation multiple but likely expand valuation with 2017 consensus revenues, billings, and profitability that are likely highly conservative versus our industry work and a continuation of 2016 operating improvements."

For an analyst ratings summary and ratings history on HubSpot Inc click here. For more ratings news on HubSpot Inc click here.

Shares of HubSpot Inc closed at $47.40 yesterday.

You May Also Be Interested In

• Primoris Services Corporation (PRIM) PT Lowered to $172 at Needham, Remains on Conviction List
• Western Midstream Partners (WES) PT Raised to $51 at Mizuho
• BMO Capital Starts RXO, Inc. (RXO) at Outperform, 'Well Positioned To Leverage TL Market Tightening'