Needham has lowered its price target for HubSpot Inc. (HUBS) to $300 from $700 and left its Buy rating unchanged, reflecting a materially reduced valuation while still signaling confidence in the company's medium-term prospects. The adjustment arrives against a backdrop of a steep share-price decline over the past year, with the stock down 73.35% over that period.
The research note underlines that the new target is closely aligned with a fair-value assessment, implying that analysts view the stock as undervalued after the recent sell-off. Needham haracterized HubSpot's fourth-quarter performance as "strong," pointing to 18% constant-currency revenue growth, outpacing the firm's own 16% estimate and guidance.
Margins remain a bright spot: gross profit margins are reported at 84.13% by the data cited in the report. Needham highlighted a robust December for HubSpot that likely contributed to what it called a "modestly smaller Q4 revenue beat." The firm also reiterated its expectation that the first quarter of fiscal 2026 will represent the low point for growth in that year, with full-year guidance targeting 16% constant-currency revenue growth.
Looking further out, Needham expressed optimism that HubSpot could return to roughly 20% subscription growth by the fourth quarter of 2026. On balance, the firm judged the fourth-quarter results sufficient to "drive a relative bottom in shares" and advised investors to buy the stock on any weakness.
HubSpot lso reported quarterly results that exceeded market forecasts for the period. The company posted earnings per share of $3.10, above a consensus estimate of $2.99, and revenue of $846.7 million versus an anticipated $830.61 million. Management's annual revenue forecast came in ahead of expectations, which supported sentiment among some investors.
Despite those beats and the retained Buy stance from Needham, other brokerages offered more cautious assessments. RBC Capital downgraded HubSpot from Outperform to Sector Perform and reduced its price target from $322 to $189, explicitly citing concerns about growth. William Blair, by contrast, maintained an Outperform rating while noting worries about the potential effects of artificial intelligence on the sector.
The mix of analyst reactions illustrates a divided view: several factors, including the recent large decline in the stock, margin strength, the pace of subscription growth, and the evolution of sector dynamics, are informing conflicting valuations and recommendations.
Investors and market participants now face a landscape in which solid recent results and healthy margins sit alongside tempered guidance and divergent broker views, leaving near-term direction dependent on execution against the fiscal 2026 growth outlook and any further developments that affect sector growth expectations.