Beyond The Numbers: 14 Analysts Discuss Freshworks Stock

Providing a diverse range of perspectives from bullish to bearish, 14 analysts have published ratings on Freshworks FRSH in the last three months.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Freshworks, presenting an average target of $21.07, a high estimate of $25.00, and a low estimate of $13.00. Observing a 7.39% increase, the current average has risen from the previous average price target of $19.62.

Decoding Analyst Ratings: A Detailed Look

The standing of Freshworks among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Brian Schwartz |Oppenheimer |Lowers |Outperform | $19.00|$24.00 | |Brent Thill |Jefferies |Lowers |Hold | $20.00|$22.00 | |Scott Berg |Needham |Maintains |Buy | $25.00|$25.00 | |Nick Altmann |Scotiabank |Raises |Sector Perform | $19.00|$17.00 | |Brett Knoblauch |Cantor Fitzgerald |Raises |Overweight | $22.00|$18.00 | |David Hynes |Canaccord Genuity |Raises |Buy | $23.00|$19.00 | |Brian Schwartz |Oppenheimer |Raises |Outperform | $24.00|$22.00 | |Raimo Lenschow |Barclays |Raises |Equal-Weight | $20.00|$14.00 | |Scott Berg |Needham |Raises |Buy | $25.00|$20.00 | |Brent Bracelin |Piper Sandler |Raises |Overweight | $24.00|$20.00 | |Michael Berg |Wells Fargo |Lowers |Underweight | $13.00|$16.00 | |Brian Schwartz |Oppenheimer |Announces |Outperform | $22.00|- | |Scott Berg |Needham |Maintains |Buy | $20.00|$20.00 | |Elizabeth Porter |Morgan Stanley |Raises |Equal-Weight | $19.00|$18.00 |

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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Freshworks compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Freshworks's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Freshworks's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 CS and ITSM categories and has also expanded its offering with Sales and Marketing automation products. These product offerings enable organizations to acquire, engage, and serve their customers and employees. The group derives revenue from North America, Europe, the Middle East and Africa, Asia Pacific, and Other regions.

Financial Insights: Freshworks

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Freshworks displayed positive results in 3M. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 21.52%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Freshworks's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -11.26%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Freshworks's ROE stands out, surpassing industry averages. With an impressive ROE of -1.93%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Freshworks's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.37%, the company may face hurdles in achieving optimal financial performance.

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

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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