Raymond James downgrades HubSpot stock rating on 2027 growth concerns
Raymond James has reduced HubSpot Inc's stock rating to Market Perform from Outperform, expressing concerns over 2027 growth prospects. Analyst Brian Peterson downgraded the stock, citing a more conservative outlook for HubSpot's growth in 2027. The stock price of HubSpot, currently at $214.53, has fallen by 53% over the past year.
Despite the downgrade, InvestingPro analysis suggests HubSpot remains undervalued, with an 83% gross profit margin. The rating change takes into account fluid demand dynamics and potential packaging changes that could impact net new growth in 2027. Raymond James doubts HubSpot would implement pricing dynamics that would negatively impact the company in the long run.
The firm believes its revised growth expectation of low double digits is a more reasonable projection for the start of 2027, compared to the Street consensus of 14%. This revised expectation is expected to prevent the stock from re-rating higher in the near term.
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