What happened

Shares of HubSpot (HUBS -2.74%) rose this morning after an analyst reinstated coverage of the company with a buy rating.

The news pushed HubSpot's share price up today, and the tech stock had gained 5.1% as of 11:33 a.m. EDT.

So what

Bank of America analyst Brad Sills put a $600 price target on HubSpot's stock and mentioned several reasons for his reinitiated coverage and his buy rating, including HubSpot's "formidable" competitive moat.

Stacked blocks with arrows on them.

Image source: Getty Images.

Sills thinks that HubSpot will be successful in tapping into the company's nearly $87 billion total addressable market, and his enthusiasm for the stock boosted investor sentiment today.

Today's positive investor note comes after the company put up impressive fourth-quarter and full-year 2020 results on Feb. 11. HubSpot's revenue increased 35% in the quarter to $252 million, and full-year sales jumped 31% to $883 million.

HubSpot also grew its total customers by 42% in 2020, to 103,994, and surpassed $1 billion in annual recurring revenue.

HubSpot's share price has performed very well over the past 12 months, rising 300% including this morning's gains.

Now what

Investors can likely expect more good news from HubSpot in the first quarter. Management has said that total revenue will be $265 million, at the high end of its guidance, which would represent a 33% year-over-year increase.

But investors should be aware that tech stocks have experienced some volatility lately as investors have shifted some of their focus to sectors they believe will thrive postpandemic. This could cause some fluctuations in HubSpot's stock -- and in other tech stocks -- in the short term as investors try to figure out where they should put their money.