Cantor Fitzgerald trimmed its price objective on HubSpot Inc. (HUBS) to $280 from $500 on Thursday, yet kept an Overweight rating on the stock. The new target sits above the recent trading level - with the share price at $226.45 - and, according to InvestingPro data cited by the research note, implies the stock remains undervalued relative to Fair Value estimates.
The brokerage firm attributed the sizeable reduction in its target to a moderation in group-level valuations and ongoing concerns about how artificial intelligence may disrupt the application software landscape. Cantor Fitzgerald said HubSpot has "felt the pressure of AI disruption as harshly as any company in App Software," but the firm also pointed to company-level operating metrics that challenge the more bearish narrative.
Among those metrics, Cantor Fitzgerald highlighted HubSpot’s net-new annual recurring revenue (ARR) growth of 24% for the year, which outpaced the company’s 18% constant currency revenue expansion. That ARR advantage has prevailed for six straight quarters, the note said, a pattern the firm interprets as signaling a potential reacceleration of revenue growth ahead.
HubSpot’s profitability profile was also emphasized. The company reported gross profit margins of 84.13%, a level Cantor Fitzgerald described as supportive of the firm’s growth trajectory even as macro and technical headwinds weigh on sentiment. InvestingPro data referenced in the research also indicates the stock’s relative strength index (RSI) is in oversold territory, which the note suggested could leave room for a technical rebound.
Those company-level positives come against a backdrop of sharp share-price depreciation. Cantor Fitzgerald noted that HUBS has plunged 73.35% over the past year, a slump the firm links in part to sector-wide valuation compression and debate around AI’s impact on application software providers.
Industry response: other analyst moves
HubSpot’s recent quarterly results prompted a number of price-target adjustments from other brokerages, even as most maintained positive stances on the name.
- Truist Securities lowered its target to $300 from $650 while retaining a Buy rating.
- BMO Capital cut its target to $285 from $385, maintaining an Outperform rating.
- Piper Sandler reduced its target to $280 from $400 and kept an Overweight rating, citing lower software multiples.
- KeyBanc trimmed its target to $340 from $400, pointing to concerns over HubSpot’s 2026 revenue growth guidance.
- TD Cowen adjusted its target to $270 from $370, noting the company’s 18% revenue growth and fiscal 2026 guidance were in line with expectations.
Collectively, these revisions reflect a range of analyst perspectives: firms maintain generally constructive ratings but have pulled back targets to reflect reduced sector multiples and nearer-term uncertainty.
Outlook and analyst context
Cantor Fitzgerald emphasized that while short-term negative momentum may be difficult to fully counter, the persistent trend of ARR outstripping top-line growth implies the potential for a renewed acceleration in revenue. The firm also noted expectations that HubSpot will be profitable this year, a projection that InvestingPro highlights alongside additional research tools and ProTips available for the stock.
In sum, the research community’s recent actions leave HubSpot at an inflection point in market perception: underlying product metrics and margin strength argue for recovery potential, yet valuation compression and AI-driven sentiment have materially lowered near-term price targets across brokers.
What this means for markets
The moves underline pressure across the application software sector and the sensitivity of software multiples to narratives around AI disruption. They also reflect how investors and sell-side analysts are reconciling company-level fundamentals with broader market valuation trends.