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.

Check out other analyst stock ratings.

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.

Read Next: Economists React To November Inflation Numbers: What Lies Beneath the Surface For the Fed?

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasUpgradesPrice TargetAnalyst RatingsTrading IdeasExpert IdeasPiper SandlerStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!