Analyst Says 'HubBub Around HubSpot Well Deserved,' Initiates With Buy

In a report published Tuesday, Needham analysts initiated coverage of HubSpot Inc (NYSE: HUBS) with a Buy rating and a price target of $50.The analysts believe that HubSpot is "a premier SaaS secular growth story" that is well positioned to benefit from "a huge horizontal multi-geography market opportunity and several compelling trends." In the report Needham noted, "Key business metrics, including recurring rev growth, billings growth, ARPU growth, retention rates, and gross margins are impressively up and to the right, suggesting the strength of underlying trends and top-of-class sales execution that could power continued premium growth rates for the foreseeable future."Consumer buying behaviors are changing rapidly, with the strategic importance of online, social and mobile on the rise. Therefore, the consumer purchase cycle is "being flipped on its head." Consequently, organizations of all sizes are "being forced to revamp and modernize outdated, interruptive marketing strategies and are consequently turning to "Inbound Marketing" strategies in droves."Since the concept of "Inbound Marketing" was essentially pioneered by HubSpot and the company now "dominates from a mindshare standpoint," the analysts believe that HubSpot is very well-positioned to "capture a disproportionate share of the organizations embracing next-generation marketing tools and strategies."