Stifel reiterates Hold on HubSpot stock after workforce reduction

Stifel has maintained its Hold rating and set a $225.00 price target on HubSpot Inc (NYSE:HUBS) following the company’s announcement of a 7% workforce reduction, impacting around 660 employees. Despite the stock trading at $219.88, down 45% year-to-date, InvestingPro analysis indicates HubSpot remains undervalued at current levels.

HubSpot reaffirmed its third-quarter and 2026 guidance during the announcement, stating the workforce reduction was not driven by AI efficiencies but aimed to create a flatter, more agile organization focused on customer outcomes rather than individual products and hubs. The company unveiled a target of 30% non-GAAP operating margin for 2030.

This move aligns with broader changes to HubSpot’s strategy, platform, products, and pricing around AI, with further details expected during the third-quarter earnings call. The reduction is expected to incur between $65 million and $75 million in charges, primarily due to severance and employee transition costs, with most costs anticipated in the fourth quarter.

While other firms like William Blair and Raymond James have maintained or downgraded their ratings on HubSpot, UBS has raised its price target to $290, highlighting advancements in AI capabilities. Stifel’s Hold rating with a $225.00 price target underscores the company’s emphasis on driving customer spending through value delivery and outcome clarity.