Morgan Stanley analyst Stan Zlotsky downgraded HUBS today due to valuation concerns. The stock price has increased about 100% over the last 12 months and therefore, per Zlotsky, all the growth is priced in already.
Sounds like price anchoring to me, but what do I know?
Very weird, Zlotsky downgrades the stock, but still sees price appreciation for the shares, just not much.
He called HubSpot “a developer of software products for inbound marketing and sales, is an unique software asset, combining growth, profitability and a strong executive…” He went on to say, “A large, $28-billion total addressable market supports a long runway of growth ahead.” The analyst said he “sees expansion opportunity from the company’s foray into the customer service market with the introduction of Customer Hub in 2018.”
Golly, sounds like a bright future to me, but again, what do I know?