What 14 Analyst Ratings Have To Say About Freshworks

In the latest quarter, 14 analysts provided ratings for Freshworks FRSH, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 5 5 2 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 1 4 4 2 0
3M Ago 1 0 1 0 0

Analysts have recently evaluated Freshworks and provided 12-month price targets. The average target is $18.5, accompanied by a high estimate of $27.00 and a low estimate of $11.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 6.04%.

Deciphering Analyst Ratings: An In-Depth Analysis

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.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Matthew Vanvliet Cantor Fitzgerald Announces Overweight $20.00 -
Taylor McGinnis UBS Lowers Buy $19.00 $22.00
Elizabeth Porter Morgan Stanley Raises Equal-Weight $18.00 $14.00
Nick Altmann Scotiabank Raises Sector Perform $18.00 $14.00
Michael Berg Wells Fargo Raises Underweight $12.00 $11.00
Patrick Walravens JMP Securities Maintains Market Outperform $27.00 $27.00
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

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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

For valuable insights into Freshworks's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Freshworks analyst ratings.

Get to Know Freshworks Better

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.

Understanding the Numbers: Freshworks's Finances

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: Over the 3M period, Freshworks showcased positive performance, achieving a revenue growth rate of 18.85% as of 31 March, 2025. This reflects 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 -0.66%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -0.12%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Freshworks's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.08%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Freshworks's debt-to-equity ratio is below the industry average. With a ratio of 0.04, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

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.

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

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FRSHFreshworks Inc
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