Freshworks (NASDAQ:FRSH) Price Target Raised to $12.00 at Piper Sandler

Key Points

• Piper Sandler raised Freshworks’ price target from $10 to $12 while maintaining a “neutral” rating; the new target implies roughly 0.33% downside from the stock’s current price.
• Freshworks reported second-quarter adjusted EPS of $0.17 and revenue of $237.4 million, exceeding analyst estimates, with revenue up 16% year over year. The company also raised its full-year 2026 adjusted EPS guidance to $0.66–$0.68.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $13.42; insiders sold $270,331 worth of shares over the past 90 days.

Freshworks (NASDAQ:FRSH - Get Free Report) had its target price boosted by equities researchers at Piper Sandler from $10.00 to $12.00 in a report released on Wednesday,Benzinga reports. The firm presently has a "neutral" rating on the stock. Piper Sandler's target price points to a potential downside of 0.33% from the stock's current price.

Other equities analysts also recently issued research reports about the stock. Morgan Stanley reduced their price target on shares of Freshworks from $15.00 to $13.00 and set an "equal weight" rating for the company in a report on Monday, May 11th. Wall Street Zen cut shares of Freshworks from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Weiss Ratings downgraded shares of Freshworks from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, May 7th. Zacks Research lowered shares of Freshworks from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. Finally, Guggenheim started coverage on shares of Freshworks in a research note on Wednesday, July 22nd. They issued a "buy" rating and a $25.00 price target on the stock. One equities research 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 given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $13.42.

Freshworks Trading Up 2.3%

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

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 return on equity of 4.27% and a net margin of 20.69%.The firm had revenue of $237.38 million during the quarter, compared to the consensus estimate of $233.62 million. During the same period in the prior year, the business earned $0.18 EPS. The firm'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, equities analysts forecast that Freshworks will post -0.02 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Freshworks news, CAO Philippa Lawrence sold 3,470 shares of the firm's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $10.13, for a total transaction of $35,151.10. Following the transaction, the chief accounting officer owned 456,144 shares of the company's stock, valued at approximately $4,620,738.72. This trade represents a 0.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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. Also, Director Barry L. Padgett sold 6,618 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total transaction of $69,422.82. Following the sale, the director owned 47,270 shares in the company, valued at $495,862.30. This trade represents a 12.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 27,236 shares of company stock valued at $270,331 over the last 90 days. 8.54% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Summit Securities Group LLC bought a new position in Freshworks during the 4th quarter valued at $26,000. IFP Advisors Inc lifted its holdings in shares of Freshworks by 954.9% in the fourth 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. Cullen Frost Bankers Inc. bought a new position in Freshworks during the fourth quarter valued at about $36,000. Allworth Financial LP grew its holdings in Freshworks by 479.9% during the fourth quarter. Allworth Financial LP now owns 3,201 shares of the company's stock worth $39,000 after acquiring an additional 2,649 shares during the period. Finally, EverSource Wealth Advisors LLC grew its holdings in Freshworks by 427.6% during the second quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company's stock worth $67,000 after acquiring an additional 3,630 shares during the period. Institutional investors and hedge funds own 75.58% of the company's stock.

Key Freshworks News

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.

Freshworks Company Profile

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.

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