HubSpot(US:HUBS) 247Wallst·2026-03-31 13:50Core Viewpoint - HubSpot (NYSE:HUBS) has received a positive outlook from Bank of America, which reinstated coverage with a Buy rating and a price target of $300, despite the stock having fallen 64% from its 2025 highs, indicating a potentially attractive entry point for investors [2][4]. Company Performance and Financials - HubSpot's Q4 2025 revenue was reported at $846.75 million, reflecting a year-over-year increase of 20.4%, surpassing consensus estimates by 2% [6]. - The non-GAAP EPS for Q4 2025 was $3.09, exceeding the expected $2.99 [6]. - The GAAP operating margin improved significantly from -1.5% in Q4 2024 to +5.7% in Q4 2025, indicating a positive operational shift [6]. - Customer count reached 288,706, marking a 16% increase year-over-year, while calculated billings grew by 27% to $971.4 million [6]. Analyst Insights - Bank of America anticipates a revenue growth reacceleration for HubSpot to 20% in 2026, supported by the company's guidance of $3.69 to $3.70 billion in revenue, which represents an 18% year-over-year growth [4]. - The firm noted gross profit margins of 84% and highlighted that 22 analysts have recently raised their earnings estimates for HubSpot [4]. - The reinstatement of coverage by Bank of America adds credibility to the view that the recent selloff in HubSpot's stock may have been overdone, with a consensus of 34 Buy ratings against only three Holds and no Sells [8]. Market Position and Valuation - HubSpot's stock is currently trading at approximately $242.55, significantly below its 200-day moving average of $417.97, indicating a substantial valuation compression [7]. - The forward price-to-earnings multiple is projected to be around 20x based on the full-year 2026 non-GAAP EPS guidance of $12.38 to $12.46, a stark contrast to the trailing multiple of 277x [7]. - Institutional investors have shown renewed interest, with significant new positions being built by firms such as Atreides Management and Danica Pension [7].