Bank of America suggests that HubSpot, the customer relationship manager, has the potential for further growth through the implementation of artificial intelligence (AI). Analyst Brad Sills expressed the high level of interest in AI and described HubSpot as the leading player in the small and medium-sized business front office applications category, highlighting its superior platform, channel, and brand. Sills reiterated his buy rating on the company's shares and designated it as a top choice, increasing the price target from $530 to $635, indicating a potential 16% growth based on Thursday's closing price. Sills anticipates that HubSpot will achieve market share gains due to its competitive advantages, including its innovative inbound marketing strategy, diverse range of offerings, and expanding network of digital marketing partners. He expects revenue growth to exceed 20% in the upcoming years.

Sills also emphasized that HubSpot is well-positioned for AI integration and development, thanks to its substantial data set of over 1 billion transactions and 177, 000 customers, which is housed in its self-built platform. Despite a 92% surge in share value year-to-date, Bank of America believes HubSpot's stock is still undervalued compared to other large-cap software companies. The stock rose an additional 0. 8% on Friday morning. This report includes contributions from CNBC's Michael Bloom.