Analyst Says HubSpot More Insulated From Macroeconomic Risks But Retail Mood Fails To Lift

Customer relationship management platform company HubSpot, Inc. (HUBS) is one of the small and medium business (SMB)-focused software-as-a-service company that has the potential to weather the ongoing macroeconomic uncertainties, an analyst said Tuesday. 

Morgan Stanley analyst Elizabeth Porter said the uncertainty resulting from trade tensions, tariffs and the Department of Government Efficiency (DOGE) portends to weaker IT spending demand. 

The analyst noted that the firm’s first quarter Chief Investment Officers (CIO) survey showed that the later responses signaled a deceleration in growth outlook. She also noted that the recent channel checks showed the first-quarter performance was largely in line with expectations, given volatility emerged toward the end of the quarter.

However, a pushout of deals will likely impact second-quarter performance, she added.

Porter said partners do not look to reduce or cancel spending but to pause deals, resulting in a lower growth outlook for the second quarter and tempered outlook for 2025.

According to the analysts, partners exposed to clients with tariff risk and inventory concerns, namely consumer and packaged goods, retail and manufacturing verticals, may have to acutely lower full-year outlook.

On the other hand, partners exposed to verticals such as services, tech and health suggested little to no impact on demand or pipeline creation, she added.

Morgan Stanley’s screening showed HubSpot is among the SMB SaaS names which are relatively insulated as it has financial models set up conservatively and its stock trades at a discount to the average valuation over the last twelve months.

The firm also said the company scored relatively neutral to positive on qualitative factors such as large deal sizes that are harder to close, volatile transaction exposure, and reduced opportunity to trim costs.

On Stocktwits, retail sentiment toward HubSpot stock remained ‘bearish’ (35/100) and the message volume stayed ‘extremely low.’

A bearish watcher said the stock is overvalued.

Another user said shorting the stock has been profitable for them.

HubSpot stock closed Tuesday’s session up 1.88% at $582.02 but it is down over 15% so far this year.

The Koyfin-compiled consensus price target for the stock is $846.70.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<