Analysts cut HubSpot rating after weak guidance and pressured demand

Investing.com -- HubSpot was downgraded by Bernstein, Oppenheimer and Piper Sandler in notes on Thursday following its second-quarter results, as analysts pointed to slowing growth, disappointing guidance and a lack of near-term catalysts.

Bernstein analyst Firoz Valliji cut the stock to Market-Perform from Outperform and slashed his price target to $220 from $381.

He told investors that the recent results show "growth expectations have degraded since the company changed its GTM and pricing strategies," with recovery likely to take time as management confidence in the outlook has rolled back.

Valliji stressed he does not think "the business is fundamentally broken," but rather that it faces a confluence of headwinds, including a difficult macro, uncertainty over AI adoption timing and maturation of the SaaS CRM market. Without a clear catalyst, he said, the stock "will likely sit in the penalty box for a while."

Oppenheimer analyst Ken Wong downgraded HubSpot to Perform from Outperform after "in-line-ish" second-quarter results and disappointing guidance.

He noted that the company fell short on net customer adds, at roughly 7,000 versus 9,000 to 10,000 expected, with static net revenue retention and projections for further erosion. Wong no longer sees "line of sight to an inflection," though he noted the valuation likely limits further downside.

Finally, Piper Sandler analyst Billy Fitzsimmons also moved to Neutral, trimming his target to $220, citing 3Q revenue guidance of 15% growth and a reduced full-year outlook.

He attributed the weakness to "lengthening sales cycles and heightened budget sensitivity," and said HubSpot will remain "in the penalty box" until there is a clearer sightline into stable growth and inflecting AI usage.

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