HubSpot marketing to continue growing sales
Marketing software provider HubSpot Inc. (HUBS) is currently trading more than 45% below 52-week highs since the company is in favorable market conditions and continues to increase revenue.
In 2021, HubSpot exceeded revenue and profit forecasts in each quarter, which contributed to the growth of the stock year.
Moreover, the company managed to accelerate growth faster than last year. For example, in the previous reporting quarter, HubSpot’s revenue grew by 48.5% year-on-year, much faster than the 31.7% growth in the same quarter last year. As a result, the pandemic has become a growth factor for HubSpot.
The company supplies software to create online content that attracts customers to a website. Currently, HubSpot’s portfolio also includes software for customer relationship management (CRM), solutions for customer service and content management systems (CMS), the Operations Hub tool for viewing all data from multiple sources in a single unified system, the HubSpot Payments payment processing application.
Demand for such solutions was high even during the pandemic, but now, as the economy recovers, it is getting even more prominent, and HubSpot’s revenue growth is accelerating. Thus, the existing portfolio of solutions allows HubSpot to quickly attract new customers and increase their expenses on the platform. Note that at the end of 2021, several analysts improved the forecast for HubSpot shares at once. For example, Raymond James is most optimistic about Hubspot’s target price of $900 with a “strictly buy” recommendation.
The Wells Fargo analysts raised the target price to $860 with the recommendation “above the market.” Morgan Stanley adheres to a similar proposal, but their target price is $862.
