Companies in the Technology sector have received a lot of coverage today as analysts weigh in on HubSpot (HUBS) and CyberArk Software (CYBR).
HubSpot (HUBS)
Evercore ISI analyst Kirk Materne maintained a Hold rating on HubSpot yesterday and set a price target of $175. The company’s shares opened today at $189.59, close to its 52-week high of $193.28.
Materne said:
“We would note margin outperformance during the quarter benefited from a hiring shortfall and we would expect more limited op. margin leverage in 2H as the company backfills headcount across the entire org. Billings growth of 33.7% Y/Y far exceeded consensus estimates of 28.2%. While net retention came in just below 100%, total customer growth maintained a 35% level for the second consecutive quarter. The company ended 25K multi-hub customers and over 5K Service Hub customers. ARPC showed a slight acceleration q/q due to a mix shift of offerings but would expect to see continued pressure going forward due to a higher mix of lower- priced sales and marketing customers.”
Materne has an average return of 37.5% when recommending HubSpot.
According to TipRanks.com, Materne is ranked #87 out of 5229 analysts.
Currently, the analyst consensus on HubSpot is a Moderate Buy with an average price target of $201.29, a 6.2% upside from current levels. In a report issued on August 6, KeyBanc also maintained a Hold rating on the stock.
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CyberArk Software (CYBR)
Evercore ISI analyst Kenneth Talanian maintained a Buy rating on CyberArk Software yesterday and set a price target of $140. The company’s shares opened today at $119.24.
Talanian said:
“We continue to view the PAM market backdrop as favorable with lower competition (as a result of PE acquisitions of competitors) and growing secular opportunities around the cloud, newer compliance regimes, and RPA. Further the company continues to improve their go-to-market efforts. We note there is risk with the head of sales transition but believe it is manageable given the lead-time and expect continued execution through 2019 and beyond. We remain Outperform rated with $140 PT and view the recent sell-off as a buying opportunity.”
According to TipRanks.com, Talanian is a 5-star analyst with an average return of 14.6% and a 64.3% success rate. Talanian covers the Technology sector, focusing on stocks such as Proofpoint Inc, Check Point, and FireEye Inc.
Currently, the analyst consensus on CyberArk Software is a Strong Buy with an average price target of $142.29, which is a 19.3% upside from current levels. In a report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $160 price target.
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