Cantor Fitzgerald Forecasts Strong Price Appreciation for Freshworks (NASDAQ:FRSH) Stock

Key Points

• Cantor Fitzgerald raised Freshworks’ price target from $12 to $15 and maintained an “overweight” rating, implying approximately 24.6% upside from the current share price.
• Freshworks exceeded quarterly expectations with adjusted EPS of $0.17 and revenue of $237.4 million, up 16% year over year. The company also raised its full-year 2026 adjusted EPS guidance to $0.66–$0.68.
• Despite Cantor’s bullish view, analyst sentiment remains mixed, with an average “hold” rating and consensus price target of $13.67; insiders have also sold 27,236 shares over the past quarter.

Freshworks (NASDAQ:FRSH - Get Free Report) had its price target increased by research analysts at Cantor Fitzgerald from $12.00 to $15.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Cantor Fitzgerald's target price points to a potential upside of 24.58% from the stock's current price.

FRSH has been the subject of a number of other research reports. Wall Street Zen lowered shares of Freshworks from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Zacks Research downgraded Freshworks from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Weiss Ratings lowered Freshworks from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, May 7th. Morgan Stanley lowered their target price on Freshworks from $15.00 to $13.00 and set an "equal weight" rating for the company in a research note on Monday, May 11th. Finally, Citigroup restated a "market outperform" rating on shares of Freshworks in a research report on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $13.67.

Freshworks Stock Up 2.3%

Freshworks stock opened at $12.04 on Wednesday. The stock has a 50-day simple moving average of $10.09 and a 200 day simple moving average of $9.18. The stock has a market capitalization of $3.33 billion, a price-to-earnings ratio of 19.42 and a beta of 0.86. Freshworks has a 12-month low of $6.79 and a 12-month high of $14.06.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.04. Freshworks had a net margin of 20.69% and a return on equity of 4.27%. The firm had revenue of $237.38 million for the quarter, compared to analyst estimates of $233.62 million. During the same quarter in the prior year, the firm earned $0.18 EPS. The company's revenue was up 16.0% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, sell-side analysts anticipate that Freshworks will post -0.02 EPS for the current year.

Insiders Place Their Bets

In other news, Director Jennifer H. Taylor sold 6,618 shares of the business's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $10.44, for a total transaction of $69,091.92. Following the completion of the transaction, the director directly owned 62,673 shares in the company, valued at approximately $654,306.12. The trade was a 9.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Philippa Lawrence sold 10,530 shares of the company's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $9.18, for a total value of $96,665.40. Following the completion of the sale, the chief accounting officer directly owned 465,823 shares of the company's stock, valued at approximately $4,276,255.14. This trade represents a 2.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 27,236 shares of company stock worth $270,331. Insiders own 8.54% of the company's stock.

Institutional Investors Weigh In On Freshworks

Hedge funds have recently bought and sold shares of the company. IFP Advisors Inc grew its holdings in shares of Freshworks by 954.9% in the 4th quarter. IFP Advisors Inc now owns 2,152 shares of the company's stock valued at $26,000 after buying an additional 1,948 shares during the period. Summit Securities Group LLC bought a new position in Freshworks during the fourth quarter worth about $26,000. Cullen Frost Bankers Inc. bought a new position in Freshworks during the fourth quarter worth about $36,000. Allworth Financial LP grew its stake in Freshworks by 479.9% in the fourth quarter. Allworth Financial LP now owns 3,201 shares of the company's stock valued at $39,000 after acquiring an additional 2,649 shares during the period. Finally, Meeder Asset Management Inc. grew its stake in Freshworks by 164.0% in the first 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. 75.58% of the stock is currently owned by institutional investors and hedge funds.

Freshworks News Roundup

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Freshworks reported second-quarter adjusted earnings of $0.17 per share, above the $0.13 analyst consensus, while revenue of $237.4 million exceeded estimates of $233.6 million and increased 16% year over year. Freshworks Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company posted $3.2 million in GAAP net income, its first GAAP-profitable quarter of 2026, and said it achieved its eighth consecutive quarter meeting the Rule of 40 benchmark for growth and profitability. Freshworks Reports Record Second Quarter 2026 Results
• Positive Sentiment: Freshworks raised full-year 2026 adjusted EPS guidance to $0.66-$0.68, well above the $0.50 consensus, and lifted revenue guidance to $963.5-$966.5 million versus estimates of $961.2 million.
• Positive Sentiment: Third-quarter EPS guidance of $0.18 is above the $0.15 analyst expectation, while projected revenue of $244.5-$245.5 million is broadly in line with the $244.9 million consensus.
• Neutral Sentiment: Management’s earnings call and presentation highlighted continued growth and profitability improvements; investors will likely focus on whether those trends can continue as the company scales its customer-service and IT-management software business. Freshworks Q2 2026 Earnings Call Transcript
• Negative Sentiment: Adjusted EPS of $0.17 was slightly below the $0.18 reported in the same quarter last year, indicating that year-over-year earnings growth has not yet matched the company’s revenue expansion.

About Freshworks

Freshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company's integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks' platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company's flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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