Citi analysts reaffirmed a Buy rating and a $767 price target on HubSpot (NYSE:HUBS) stock. The analysts commented on the recent 12% drop in HubSpot shares following a Bloomberg report indicating that Alphabet had backed out of a potential bid. While acknowledging that some decline was expected after the deal fell through, they believe the extent of the pullback is excessive, especially compared to the broader decline in front-office software stocks over the past three months.

The analysts emphasized that despite the setback, HubSpot's strong fundamental prospects remain intact. They highlighted anticipated product, pricing, and generative AI benefits likely to emerge in the second half of the year, which they believe will provide a long growth runway for the company.