BMO Capital has reduced its price target on HubSpot Inc (NYSE:HUBS) to $285.00 from $385.00 while retaining an Outperform rating on the shares. The firm framed the revision as a response to movement in sector valuations rather than a reflection of HubSpot’s operating performance.
According to BMO, the company produced "solid results across the board," with reported financials showing generally good execution. In particular, BMO highlighted HubSpot’s fiscal year 2026 revenue guidance of 16% year-over-year growth on a constant currency basis, which the research team said slightly exceeded the firm’s own estimates and represented "an appropriate starting point" for the business.
The research note emphasized confidence in HubSpot’s forward picture. BMO pointed to expectations for an expanding Net Revenue Retention (NRR) and continued healthy customer additions, calling the company’s targets "achievable and perhaps conservative." Despite that constructive view on fundamentals, BMO attributed the lowered price target to what it described as "ongoing compression in SaaS front office valuations," explicitly distinguishing the move from concerns tied directly to HubSpot’s performance.
Other sell-side firms have also acted on HubSpot in recent sessions, reflecting a range of conclusions about the company’s outlook and the software sector more broadly. Piper Sandler cut its price target to $280 from $400 while maintaining an Overweight rating, linking its action to lower software multiples across the sector. KeyBanc trimmed its target to $340 from $400, expressing concern that HubSpot’s 2026 revenue guidance fails to meet the company’s stated aim of returning to 20% growth.
Needham made a sizable downward revision as well, lowering its price objective to $300 from $700 even as it acknowledged HubSpot’s strong fourth-quarter performance, which included 18% constant currency revenue growth. RBC Capital took a more cautious approach by downgrading the stock from Outperform to Sector Perform and cutting its price target to $189 from $322; the firm cited potential cost pressures as a factor in its decision. By contrast, William Blair kept an Outperform rating in place, noting recent stock price compression and concerns about the potential impact of artificial intelligence on the sector but remaining constructive on the name.
Taken together, these analyst actions illustrate a mixed reception to HubSpot’s near-term trajectory: reporting-quality results and a revenue guide that modestly exceeded some estimates sit alongside sector-wide multiple compression and questions about the pace of return to higher growth. Several firms trimmed targets or adjusted ratings for reasons ranging from broad software-multiple declines to specific worries about cost dynamics and growth cadence.
Contextual note: The analyst adjustments and target changes reflect current assessments from the named research firms and the commentary they provided; they do not indicate any one definitive outlook for the company. Market participants will weigh HubSpot’s execution and guidance against evolving sector valuation trends and cost assumptions.