11:24 AM EDT, 09/19/2024 (MT Newswires) -- HubSpot's ( HUBS ) strategic initiatives such as pursuing volume downmarket and upmarket cross-sell, expansion from the seat model, and continued product innovation are likely to deliver durable long-term growth for the company, Oppenheimer said in a note Thursday.

At its recent Investor Day in Boston, the customer relationship management platform provider raised its long-term EBIT margin target to 25% compared with the previous target range of 20% to 25% and announced a 2027 target range of 20% to 22%, higher than the 2026 target of 18% to 20%, according to the note.

The company also introduced several notable artificial intelligence-related products and discussed seat-based model tailwinds.

"Management expects higher volumes to be the early source of growth from the seat-based model. We see the strategy to focus on customer growth as prudent with a proven cross-sell strategy enhanced by lower attach/upsell friction, the byproduct of the seat model," Oppenheimer said.

Oppenheimer has an outperform rating on HubSpot ( HUBS ) with a $625 price target.

Shares of the company were 3% higher in recent trading.

Price: 518.95, Change: +15.19, Percent Change: +3.02