HubSpot (HUBS) shares plummeted 5.17% in intraday trading on Thursday, despite the company reporting second-quarter revenue that exceeded analyst expectations. The sharp decline came as multiple Wall Street analysts lowered their price targets for the customer relationship management (CRM) software provider.
Several prominent financial institutions, including TD Cowen, Jefferies, Raymond James, and Bernstein, reduced their price targets for HubSpot. TD Cowen cut its target to $600 from $650, Jefferies lowered its target to $650 from $700, Raymond James decreased its target to $655 from $825, and Bernstein reduced its target to $606 from $708. These adjustments suggest growing concerns about HubSpot's future growth prospects or current valuation levels.
However, it's worth noting that many analysts maintained positive ratings on HubSpot stock despite the price target reductions. Piper Sandler even upgraded HubSpot to Overweight from Neutral, raising its price target to $675 from $645. This mixed sentiment indicates that while there are some near-term concerns, many analysts still see long-term potential in the company.
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