Analyst Expectations For Freshworks's Future

Throughout the last three months, 15 analysts have evaluated Freshworks FRSH, offering a diverse set of opinions from bullish to bearish.

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.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 6 5 1 0
Last 30D 0 1 0 0 0
1M Ago 0 2 3 1 0
2M Ago 1 0 0 0 0
3M Ago 2 3 2 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $20.13, a high estimate of $25.00, and a low estimate of $11.00. Witnessing a positive shift, the current average has risen by 1.31% from the previous average price target of $19.87.

Diving into Analyst Ratings: An In-Depth Exploration

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
Brent Bracelin Piper Sandler Raises Overweight $22.00 $20.00
Nick Altmann Scotiabank Lowers Sector Perform $14.00 $19.00
Brent Bracelin Piper Sandler Lowers Overweight $20.00 $24.00
Michael Berg Wells Fargo Lowers Underweight $11.00 $13.00
Elizabeth Porter Morgan Stanley Lowers Equal-Weight $14.00 $21.00
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

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 a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Freshworks compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Freshworks's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Freshworks's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Freshworks analyst ratings.

Unveiling the Story Behind Freshworks

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.

Unraveling the Financial Story of Freshworks

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

Positive Revenue Trend: Examining Freshworks's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 21.52% as of 31 December, 2024, showcasing a substantial increase in 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 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): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -1.93%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Freshworks's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.37%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Freshworks's debt-to-equity ratio is below the industry average at 0.03, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

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.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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

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