Why This HubSpot Analyst Believes 2024 Estimates Are 'Too Low'

Shares of HubSpot Inc HUBS were climbing Tuesday.

“Positive inputs from our 2024 CIO survey data showing a material uptick in budget priority for marketing” and website data showing sequential improvements in traffic in October and November suggested consensus estimates might be too low, according to Piper Sandler.

The HubSpot Analyst: Brent Bracelin upgraded the rating for HubSpot from Neutral to Overweight, while raising the price target from $515 to $610.

The HubSpot Thesis: The 2024 CIO survey, website data and the Clearbit acquisition suggest that the consensus estimate of 17.7% growth may be too conservative, Bracelin said in the upgrade note.

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The Street estimate reflected “several macro risks around SMB spending uncertainty and recessionary fears,” the analyst stated.

“We are raising revenue estimates by $60M in 2024E factoring in roughly $27M contribution from Clearbit and a $33M higher estimate across the core factoring in improving top-of-funnel metrics with website data improving m/m in October and November coupled with CIO survey data showing a recovery from July 2023 in marketing and sales as priorities entering 2024,” he added.

HUBS Price Action: Shares of HubSpot had risen by 3.84% to $520.83 at the time of publication on Tuesday.

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