Stifel recently lowered its price target on HubSpot Inc (NYSE:HUBS) to $500 from $550, though it continues to endorse the stock with a Buy rating. This new target still implies a substantial 53% upside compared to HubSpot’s prevailing share price of $327.34, despite the stock having declined by over 56% in the past year.
The adjustment primarily reflects the impact of current software sector multiple compression rather than fundamental weaknesses within HubSpot itself. Stifel highlighted an improvement in sentiment across HubSpot’s partner ecosystem relative to the prior quarter.
In the fourth quarter of 2025, partners reported strong progress in penetrating upmarket segments and driving momentum across multiple HubSpot platforms. A particular focus was the positive adoption trend seen with Breeze Agent solutions, as partners noted meaningful engagement with Customer and Prospecting Agents for the first time. These developments correspond with HubSpot’s impressive revenue growth of 19.21% and gross profit margins of 84.13%, according to InvestingPro data.
Amid broader concerns regarding AI-related disruptions, no partners indicated imminent headcount cuts or reductions in user seats linked to AI integration. Feedback underscored the ongoing importance of the Marketing Hub, along with HubSpot’s emerging role in Answer Engine Optimization (AEO), signaling robust confidence in the company’s evolving product suite.
Partners anticipate that adoption of HubSpot’s AI-driven agents will scale throughout 2026, suggesting sustained growth prospects despite the tempered price target. InvestingPro analysis positions HubSpot as undervalued at current levels, further supported by a consensus strongly favoring a Buy rating. Investors should note the upcoming earnings release scheduled for February 18, which could serve as an event catalyst.
Additional analyst perspectives provide varied views on HubSpot’s trajectory. Raymond James retains an Outperform rating with a $525 price target, highlighting growth surpassing expectations by around 35%, as reported by an Elite HubSpot partner. Citi echoed a Buy rating and raised its price target to $660, concurrently initiating a 30-day upswing catalyst watch. Oppenheimer also assigned an Outperform rating with a $550 target, though it noted mixed signals given that Q4 new monthly recurring revenue fell short of internal projections.
On the other hand, Rothschild Redburn downgraded HubSpot from Buy to Neutral and cut its price target to $450, citing concerns that AI developments might pressure revenue growth. Despite some deals shifting into early 2026, Raymond James confirmed that its quarterly and annual growth objectives were still achieved. These differing assessments underscore the spectrum of sentiment about HubSpot’s prospects amid evolving market conditions.
The analysis of these diverse viewpoints illustrates both optimism about HubSpot’s innovative capabilities and caution regarding potential AI disruption and revenue variability. The dynamic software sector remains sensitive to valuation swings and growth visibility, contributing to the ongoing debate among market participants.
Investors seeking detailed insights on HubSpot and over 1,400 other stocks can access comprehensive research through InvestingPro’s platform.