Where Freshworks Stands With Analysts

Ratings for Freshworks FRSH were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $23.86, along with a high estimate of $30.00 and a low estimate of $20.00. This current average represents a 7.52% decrease from the previous average price target of $25.80.

Breaking Down Analyst Ratings: A Detailed Examination

In examining recent analyst actions, we gain insights into how financial experts perceive Freshworks. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Freshworks. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Freshworks compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Freshworks's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Freshworks's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Freshworks analyst ratings.

Delving into Freshworks's Background

Freshworks Inc provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. It offers solutions that serve the needs of users in the CX and ITSM categories and has also expanded its offering with Sales and Marketing automation products. These product offerings enable organizations to acquire, engage, and better serve their customers and employees. The group derives revenue from North America, Europe, the Middle East and Africa, Asia Pacific, and Other regions.

Freshworks's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Freshworks's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 19.25%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Freshworks's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -20.21%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Freshworks's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.93%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Freshworks's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.2%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Freshworks's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.03.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.