Raymond James on HubSpot Inc (HUBS): 'HubSpot’s AEO driven leads have conversion rates of 3x prior efforts'

Raymond James analyst Brian Peterson reiterated an Outperform rating and $655.00 price target on HubSpot Inc (NYSE: HUBS).

The analyst comments "We’re providing quick thoughts as Inbound 2025 gets underway with CEO Yamini Rangan’s opening keynote, where we heard details on HubSpot’s efforts to address inbound traffic dynamics in the age of agentic search. This is particularly important as 60% of searches today do not result in a click away from Google. HubSpot calls this new approach “the loop,” where the platform will help customers define their brand (Express), personalize their marketing content (Tailor), diversify touch points across channels (Amplify), and iterate quickly with AI assistance (Evolve). This new playbook brings several new products currently in beta, including Marketing Studio that leverages HubSpot LLM connectors to analyze high value customers and maps out a multichannel marketing strategy based off of a single campaign idea. This also includes new features to personalize and amplify a marketing campaign message across channels, with HubSpot already seeing success from its channel diversification efforts internally with leads from YouTube and newsletters up 100% y/y and 90% y/y, respectively. More importantly, HubSpot’s AEO driven leads have conversion rates of 3x prior efforts. Suffice to say, the playbook and funnel structure of an AI-enabled go-to-market looks different, but likely less so than investors may appreciate. We ultimately think that SMB and mid-market businesses will need to utilize the domain expertise from platform vendors like HubSpot to navigate growth challenges in an AI world."

For an analyst ratings summary and ratings history on HubSpot Inc click here. For more ratings news on HubSpot Inc click here.

Shares of HubSpot Inc closed at $471.54 yesterday.

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