HubSpot (HUBS) shares plunged 5.03% in intraday trading on Monday, following a significant price target cut by Argus Research. The sharp decline comes as investors reassess the company's valuation in light of the lowered expectations from a prominent Wall Street analyst.

Argus Research reduced its price target for HubSpot from $865 to $650, representing a substantial 25% decrease. This adjustment follows HubSpot's recent second-quarter earnings report, which may have raised concerns about the company's near-term growth prospects or profitability. The dramatic reduction in the price target suggests that Argus analysts have become more cautious about HubSpot's potential upside in the current market environment.

Despite the significant price target cut, it's worth noting that Argus Research has maintained its Buy rating on HubSpot shares. This indicates that while the firm has tempered its expectations for the stock's potential gains, it still sees value in the company's long-term prospects. However, the market's sharp negative reaction suggests that investors are focusing more on the lowered price target rather than the maintained positive outlook.