Freshworks (NASDAQ:FRSH) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
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 | 1 | 2 | 1 | 0 | 0 |
| Last 30D | 1 | 1 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $23.25, along with a high estimate of $27.00 and a low estimate of $16.00. Observing a 1.09% increase, the current average has risen from the previous average price target of $23.00.
Diving into Analyst Ratings: An In-Depth Exploration
An in-depth analysis of recent analyst actions unveils 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 |
|---|---|---|---|---|---|
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $16.00 | $18.00 |
| Patrick Walravens | JMP Securities | Maintains | Market Outperform | $27.00 | $27.00 |
| Scott Berg | Needham | Maintains | Buy | $25.00 | $25.00 |
| Brent Bracelin | Piper Sandler | Raises | Overweight | $25.00 | $22.00 |
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: Understanding forecasts, analysts offer estimates for Freshworks's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
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.
About 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.
Freshworks: Financial Performance Dissected
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Freshworks's revenue growth over a period of 3M has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 17.54%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: Freshworks's net margin is impressive, surpassing industry averages. With a net margin of -0.85%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Freshworks's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.17%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Freshworks's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.12% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.04, Freshworks adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: Simplified
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.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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