Demystifying Freshworks: Insights From 8 Analyst Reviews

Freshworks, Inc. Class A -4.65% Post

Freshworks, Inc. Class A

FRSH

8.00

8.02

-4.65%

+0.25% Post

In the preceding three months, 8 analysts have released ratings for Freshworks (NASDAQ:FRSH), presenting a wide array of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 3 4 0 0
Last 30D 0 0 1 0 0
1M Ago 1 2 3 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 $12.62, along with a high estimate of $18.00 and a low estimate of $8.00. Experiencing a 28.38% decline, the current average is now lower than the previous average price target of $17.62.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Freshworks is derived from recent analyst actions. The following is a detailed summary of 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 Thill Jefferies Lowers Hold $8.00 $20.00
Ryan Macwilliams Wells Fargo Lowers Equal-Weight $10.00 $13.00
Patrick Walravens Citizens Lowers Market Outperform $16.00 $27.00
Matthew Vanvliet Cantor Fitzgerald Lowers Overweight $12.00 $15.00
Scott Berg Needham Maintains Buy $15.00 $15.00
Billy Fitzsimmons Piper Sandler Lowers Neutral $10.00 $12.00
Hannah Rudoff Piper Sandler Lowers Neutral $12.00 $20.00
Brian Schwartz Oppenheimer Lowers Outperform $18.00 $19.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Freshworks. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Freshworks compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Freshworks's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Freshworks's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Freshworks analyst ratings.

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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.

Understanding the Numbers: Freshworks's Finances

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Freshworks's revenue growth over a period of 3M has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 15.3%. This indicates a substantial 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 net margin excels beyond industry benchmarks, reaching -2.18%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -0.51%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Freshworks's ROA excels beyond industry benchmarks, reaching -0.33%. This signifies efficient management of assets and strong financial health.

Debt Management: Freshworks's debt-to-equity ratio is below the industry average. With a ratio of 0.05, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

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.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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

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