03:17 PM EDT, 09/20/2024 (MT Newswires) -- HubSpot's ( HUBS ) partners believe the current macro environment remains challenging, but the company's artificial intelligence-related initiatives have spurred excitement among them, according to RBC Capital Markets.

"In general, partners noted that the macro environment remains tough and is not improving," the firm said in a note Friday, following its conversations with six HubSpot ( HUBS ) partners at a recent analyst day. "Sales cycles remain elongated and the need to prove [return on investment] during the sale remains critical."

However, RBC said the customer relationship management platform provider's AI products are viewed as a "differentiator" by its partners and are "driving incremental demand."

"We think GenAI strategic consulting is an area that could provide incremental business for partners, effectively helping to grow the HubSpot ( HUBS ) ecosystem," the firm said.

HubSpot's ( HUBS ) partners, meanwhile, said its pricing model isn't causing much impact on their businesses, according to RBC.

RBC has an outperforming rating on the stock and a $700 price target.

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