Hub Spot shares fell as much as 4.7% at the opening of U.S. trading after Wells Fargo Securities downgraded the software company to "equal-weight" from "overweight" due to concerns about its near-term artificial intelligence (AI) strategy
HubSpot shares fell as much as 4.7% at the opening of U.S. trading after Wells Fargo Securities downgraded the software company to "equal-weight" from "overweight" due to concerns about its near-term artificial intelligence (AI) strategy. Wells Fargo analyst Ryan MacWilliams wrote that while HubSpot's "broader AI transformation" is the right long-term move, the company's strategic moves "create uncertainty for investors who want to see near-term performance improvements." He added: "While we believe that better AI will eventually expand the overall addressable market size (TAM) of application software, we would like to see HUBS have a smoother setup and more AI progress before we consider ending the wait and see." The target price is set at $225, implying a 1.8% upside potential from last Friday's closing price. HubSpot currently has 25 buy ratings, 10 hold ratings and 1 sell rating; the average price target is $267.72, according to data compiled by Bloomberg.