12 analysts have expressed a variety of opinions on Freshworks FRSH over the past quarter, offering a diverse set of opinions from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 5 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 2 | 3 | 3 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $17.58, along with a high estimate of $24.00 and a low estimate of $11.00. Surpassing the previous average price target of $16.91, the current average has increased by 3.96%.
Understanding Analyst Ratings: A Comprehensive Breakdown
The perception of Freshworks by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Brent Bracelin | Piper Sandler | Raises | Overweight | $20.00 | $18.00 |
| Scott Berg | Needham | Maintains | Buy | $20.00 | $20.00 |
| Nick Altmann | Scotiabank | Raises | Sector Perform | $17.00 | $16.00 |
| David Hynes | Canaccord Genuity | Raises | Buy | $19.00 | $17.00 |
| Patrick Walravens | JMP Securities | Raises | Market Outperform | $24.00 | $21.00 |
| Rob Oliver | Baird | Lowers | Neutral | $15.00 | $16.00 |
| Pinjalim Bora | JP Morgan | Raises | Overweight | $20.00 | $17.00 |
| Michael Berg | Wells Fargo | Raises | Equal-Weight | $14.00 | $11.00 |
| Scott Berg | Needham | Maintains | Buy | $20.00 | $20.00 |
| Brent Bracelin | Piper Sandler | Raises | Overweight | $18.00 | $13.00 |
| Michael Berg | Wells Fargo | Announces | Equal-Weight | $11.00 | - |
| Brent Bracelin | Piper Sandler | Lowers | Overweight | $13.00 | $17.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Freshworks. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, 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 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.
Freshworks: A Financial Overview
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Positive Revenue Trend: Examining Freshworks's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 21.51% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Freshworks's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -16.06% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -2.66%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Freshworks's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.92%, the company may face hurdles in achieving optimal financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.03.
The Core of Analyst Ratings: What Every Investor Should Know
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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