hapapapa
Google’s potential offer (NASDAQ: GOOG) (NASDAQ: GOOGL) for HubSpot (NYSE: HUBS) shows the value of the marketing software company, even if it’s likely to be a tough sell to regulators, analysts believe.
Google’s offer could be “theoretically compelling,” given that the tech giant could integrate it into G-Suite through upsells and help bridge the advertising and marketing data gap, Citi analyst Tyler Radke said. Radke reiterated his Buy rating and $767 price target on HubSpot.
However, any deal is likely to be “difficult to execute,” given Google’s antitrust issues, even if marketing automation is considered a “competitive market,” Radke said. In addition to HubSpot, Microsoft ( MSFT ), Salesforce ( CRM ), Oracle ( ORCL ), and a number of others offer competing products.
Still, the deal is seen as a positive for Cambridge, Massachusetts-based HubSpot and the marketing technology sector as a whole, as it “affirms the strategic value” of the company and could benefit the likes of Braze ( FAST ), Klaviyo ( KVYO ) and Shopify ( SHOP), said Radke.
Others on Wall Street agreed with Radke, including Scotiabank analyst Nick Altmann, who raised his price target on HubSpot because he said the company has always been an “attractive M&A candidate” for a number of reasons, including strong long-term growth, product innovation and strong management.
Altmann raised his price target to $700 from $650 and maintained his Sector Outperform rating on HubSpot.