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HubSpot Surges After Strong Earnings, Analyst Upgrade

HubSpot shares soared Friday as analysts raised their ratings and price targets for the customer relationship management platform after a strong earnings report.

On Thursday after the close, HubSpot reported adjusted earnings of 40 cents per share in the fourth quarter, down from 45 cents from last year, but crushing the Zacks analyst consensus of 23 cents. Revenue jumped 35% to $252.1 million.

HubSpot stock recently traded at $517.00, up 19.74%. It skyrocketed 432% in the six months through Thursday amid the explosion of e-commerce during the Covid pandemic.

Morgan Stanley lifted its price target to $567 from $435, keeping its rating of overweight, while Mizuho increased its price target to $525 from $360.

Raymond James analyst Brian Peterson upgraded HubSpot to strong buy from outperform, boosting his price target to a whopping $725 from $365. He called fourth quarter earnings “impressive,” and noted HubSpot’s higher-than-expected outlook for 2021, The Fly reports.

Peterson has “confidence” in HubSpot’s array of products and its ability to modernize business-to-business selling. That area should see a lot of investment from HubSpot during the next 10 years, he said.

Truist analyst Terry Tillman ratcheted up his price target to $600 from $455, maintaining a buy rating. He called fourth quarter earnings “strong” and was impressed with the first quarter forecast, The Fly reports.

Tillman highlighted rising revenue, billings and profitability. He also noted the company’s addition of more than 8,300 new customers, and he liked that HubSpot generated record net revenue retention, record customer dollar retention and reaccelerating new business.