William Blair Bullish On HubSpot, Leaders Of 'Inbound Marketing'

Have you ever wondered who coined the term "inbound marketing"? According to the William Blair note, cloud-based marketing and software solution provider HubSpot Inc HUBS is the one. Its co-founders wrote a book on the term, and Blair analyst Bhavan Suri believes the company's expertise in marketing funnel has led to a dominant position in the Midmarket area.

Suri believes HubSpot can sustain a 30 percent-plus growth rate in the next few years for these specific reasons.

1. HubSpot can continue to add new customers as the midmarket is penetrated less than 1 percent.
2. They can expand existing customer base once users add more contacts. From there they can purchase sales and marketing add-ons.
3. The potential to develop new product offerings.

Because of these growth drivers, Suri initiated HubSpot with an Outperform rating after hours.

Shares fell $2.68 to $49.47, down 5.14 percent on the day.