HubSpot (HUBS) - Get HubSpot, Inc. Report shares rose Wednesday, after Bank of America raised its target price for the customer relationship management platform to $900 from $880, keeping its buy rating.
BofA analyst Brad Sills is enthusiastic about the company ahead of its third-quarter earnings report, which is expected Nov. 4.
HubSpot stock on Wednesday closed at $795.39, up 0.56%. It has doubled year to date amid strong financial performance.
“We expect HubSpot to report solid upside to our third-quarter revenue and billings growth estimates,” Sills wrote in a commentary.
“We recently completed calls with numerous key ad agency partners to gauge activity in the quarter,” he said.
“Key takeaways include:
“1. Another notable uptick in demand for HubSpot's leading front office suite to accelerate digital marketing efforts, with particular strength in core Marketing and Sales Hubs.
“2. Sales Hub is now seen as the tip of the spear for HubSpot and is driving the most conversations (of all the Hubs) with customers.
“3. Solid early uptake in the Operations Hub, following the launch in April.”
Morningstar analyst Dan Romanoff puts fair value at $580 for HubSpot, assigning it a narrow moat.
He raised the fair value estimate from $525 last week, after the company announced new products and features along with updated financial metrics at its investor day.
“We view the introduction of payments as easily the most important announcement, but we see the new Operations Hub enterprise edition, along with other announcements, as providing additional revenue throughout our forecast,” Romanoff wrote in a commentary.