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The analysts told investors in a note that the risk-reward on HUBS appears balanced after the +80% year-to-date move.
“Gen AI optimism has contributed to material multiple expansion across the broader software sector. The NTM EV/S multiple on HUBS has risen to 11x from 7x entering the year largely on multiple expansion combined with a slight fundamental uptick exiting Q1 (2023 growth outlook improved to 20% from 19%),” they wrote.
Despite the analysts and firm being bullish on the company’s long-term prospects for revenue to double to $4 billion within three to four years, they said they re-rated it lower based solely on valuation.
“Even after factoring in improving growth to 22% next year and raising our PT of $520 (up from $482), HUBS appears fairly valued in the short-run,” the analysts concluded.
