Freshworks (NASDAQ:FRSH) Given New $17.00 Price Target at Canaccord Genuity Group

Key Points

• Canaccord Genuity raised Freshworks’ price target from $15 to $17 and reiterated its Buy rating, implying 28.2% upside from the reported share price of $13.26.
• Freshworks reported quarterly EPS of $0.22, topping the $0.18 consensus, while revenue of $245.43 million slightly beat estimates and increased 14.1% year over year.
• Analyst views remain mixed: the consensus rating is Moderate Buy with an average $15.92 target, while Wolfe Research downgraded the stock to Peer Perform.

Freshworks (NASDAQ:FRSH - Get Free Report) had its target price hoisted by stock analysts at Canaccord Genuity Group from $15.00 to $17.00 in a research note issued on Wednesday, Benzinga reports. The firm presently has a "buy" rating on the stock. Canaccord Genuity Group's price objective would indicate a potential upside of 28.21% from the stock's current price.

A number of other equities analysts have also recently issued reports on the company. Guggenheim started coverage on Freshworks in a report on Wednesday, July 22nd. They set a "buy" rating and a $25.00 target price for the company. Wolfe Research lowered Freshworks from an "outperform" rating to a "peer perform" rating in a report on Wednesday. Robert W. Baird set a $13.00 price objective on Freshworks in a research report on Wednesday, August 5th. UBS Group increased their price objective on Freshworks from $14.00 to $17.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Zacks Research lowered Freshworks from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $15.92.

Freshworks Price Performance

FRSH traded down $0.89 during trading on Wednesday, reaching $13.26. The company had a trading volume of 11,365,503 shares, compared to its average volume of 9,763,424. Freshworks has a 12 month low of $6.79 and a 12 month high of $15.51. The business's fifty day moving average price is $13.47 and its 200 day moving average price is $10.48. The company has a market cap of $3.46 billion, a P/E ratio of 20.72, a PEG ratio of 9.47 and a beta of 0.80.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported $0.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.04. The company had revenue of $245.43 million during the quarter, compared to the consensus estimate of $245.06 million. Freshworks had a net margin of 20.49% and a return on equity of 5.52%. The firm's revenue was up 14.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.16 earnings per share. As a group, sell-side analysts predict that Freshworks will post 0.05 EPS for the current fiscal year.

Insider Transactions at Freshworks

In related news, CAO Philippa Lawrence sold 3,492 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $12.98, for a total transaction of $45,326.16. Following the completion of the transaction, the chief accounting officer directly owned 379,639 shares of the company's stock, valued at approximately $4,927,714.22. This represents a 0.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 8.54% of the company's stock.

Institutional Investors Weigh In On Freshworks

Institutional investors and hedge funds have recently made changes to their positions in the stock. Provenance Wealth Advisors LLC bought a new position in shares of Freshworks during the 3rd quarter worth approximately $28,000. Root Financial Partners LLC acquired a new position in shares of Freshworks during the 3rd quarter worth approximately $29,000. Nykredit A S bought a new stake in Freshworks in the 2nd quarter valued at $28,000. Summit Securities Group LLC raised its stake in Freshworks by 186.3% in the 1st quarter. Summit Securities Group LLC now owns 6,043 shares of the company's stock valued at $49,000 after acquiring an additional 3,932 shares during the period. Finally, Meeder Asset Management Inc. raised its stake in Freshworks by 164.0% in the 1st quarter. Meeder Asset Management Inc. now owns 6,156 shares of the company's stock valued at $49,000 after acquiring an additional 3,824 shares during the period. Institutional investors own 75.58% of the company's stock.

More Freshworks News

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Freshworks reported Q3 adjusted earnings of $0.22 per share, above the $0.18 consensus, while revenue of $245.4 million slightly topped estimates and grew 14% year over year. The company also posted record adjusted free cash flow of $73.9 million and GAAP net income of $18.3 million. Freshworks Q3 results
• Positive Sentiment: Cantor Fitzgerald raised its price target to $20 from $15 and maintained an Overweight rating, citing potential upside. Cantor Fitzgerald recommendations
• Neutral Sentiment: Piper Sandler lifted its target to $15 from $12 but kept a Neutral rating, suggesting a more measured view of the shares. Piper Sandler recommendations
• Negative Sentiment: Freshworks forecast 2026 revenue of $965 million to $966 million and aims for more than $0.94 in adjusted free cash flow per share. The outlook was characterized as cautious, tempering the upbeat quarterly results and potentially contributing to investor concern about the growth trajectory. Freshworks 2026 outlook
• Negative Sentiment: Wolfe Research downgraded FRSH from Outperform to Peer Perform, removing a bullish endorsement. Wolfe Research recommendations

Freshworks Company Profile

Freshworks Inc NASDAQ: FRSH develops cloud-based customer and employee engagement software for businesses of various sizes. Its products are designed to help organizations manage customer support, IT service operations, sales activities, and marketing workflows through user-friendly, artificial intelligence-enabled applications.

The company's product portfolio includes Freshdesk for customer service and support, Freshservice for IT and enterprise service management, Freshsales for customer relationship management, and Freshmarketer for marketing automation and customer engagement.

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