HubSpot Inc (HUBS) PT Raised to $567 After Beating Pre-Covid Targets - Morgan Stanley

February 12, 2021 3:48 AM EST
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Price: $509.66 +3.78%

Rating Summary:
    28 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 38 | Down: 18 | New: 7
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Morgan Stanley analyst Stan Zlotsky raised the price target on HubSpot Inc (NYSE: HUBS) to $567.00 (from $435.00) after the company delivered outstanding results in 2020, ending the year well above pre-COVID targets. Billings grew 38% in constant currency and 43% reported, an acceleration vs 33%/38% in Q3 and 21%/21% for the trough in 2Q20. The mid-point of revenue guidance implies growth accelerates to 32% YoY, up from 30% in constant currency and 31% reported in FY20.

The analyst reiterated an Overweight rating, stating "Decisions to be hyper-focused on customers and create a path to bring on new logos transitioning to digital acquisition set up the company’s ability to guide to accelerating revenue growth in 2021. This growth acceleration is particularly impressive considering the $1B annually recurring revenue (ARR) scale already under management. At the same time, Q4 drove operating margins to 9.8% vs us/consensus at 5.9%/6.2% and free cash flow of $45.8M vs us/Street at $25.9M/$27.2M. With potential for HubSpot to finish FY21 at 30%+ revenue growth, we believe the stock should begin to rerate toward the trading levels garnered by the cohort of SaaS names with 30%+ growth".

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