HubSpot Has Hit Frothy Levels, Time To Sell (Rating Downgrade)
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HubSpot's valuation is considered too high, with a downgrade to a sell rating due to its high EV/FY25 revenue and P/E ratios. The competitive CRM industry and focus on SMB customers add to its vulnerability in a challenging macro environment.
November 16, 2024 | 5:45 am
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HubSpot's stock is downgraded to a sell due to high valuation metrics and competitive pressures in the CRM industry. Its focus on SMB customers increases its vulnerability in a tough macro environment.
The downgrade to a sell rating is based on HubSpot's high valuation metrics, trading at 11.4x EV/FY25 revenue and 76x FY25 P/E, which are considered unsustainable. The competitive CRM industry and reliance on SMB customers further increase its risk profile, especially in a challenging macroeconomic environment. This combination of factors suggests a likely short-term negative impact on HubSpot's stock price.
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IMPORTANCE 80
RELEVANCE 100