Merrill Lynch Reiterates a Buy Rating on HubSpot

By Ryan Adsit

In a report released today, Bradley Sills from Merrill Lynch reiterated a Buy rating on HubSpot (NYSE: HUBS), with a price target of $62. The company’s shares opened today at $57.25, close to its 52-week high of $60.11.

According to TipRanks.com, Sills is a 4-star analyst with an average return of 12.8% and a 66.7% success rate. Sills covers the Technology sector, focusing on stocks such as Cornerstone Ondemand, Ultimate Software, and Salesforce.com.

Currently, the analyst consensus on HubSpot is Strong Buy and the average price target is $64.86, representing a 13.3% upside.

In a report issued on October 31, J.P. Morgan also upgraded the stock to Buy with a $62 price target.

Based on HubSpot’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $70.59 million and GAAP net loss of $10.52 million. In comparison, last year the company earned revenue of $47.71 million and had a GAAP net loss of $13.55 million.

Based on the recent corporate insider activity of 135 insiders, corporate insider sentiment is neutral on the stock. Most recently, in May 2016, David Skok, a Director at HUBS sold 11,005 shares for a total of $501,643.

HubSpot, Inc. provides cloud-based marketing and sales software platform that enables businesses to deliver an inbound experience. Its software platform features integrated applications to help businesses to convert visitors into leads, close leads into customers and delight customers to become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, website content management, marketing automation, email, analytics and reporting. The company’s platform uses its centralized inbound database to empower businesses to create more personalized interactions with customers, such as personalized emails, personalized social media alerts, personalized websites and targeted alerts for sales people. HubSpot was founded by Brian Halligan and Dharmesh Shah on April 4, 2005 and is headquartered in Cambridge, MA.