Freshworks (NASDAQ:FRSH) Given New $16.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley has reduced its price target for Freshworks' stock from $18.00 to $16.00, maintaining an "equal weight" rating, which indicates a potential upside of 27.62% based on current prices.
• Freshworks has experienced mixed ratings from analysts, with eight giving it a "Buy" rating, while others lowered their ratings, leading to a consensus rating of "Moderate Buy" with an average target price of $20.14.
• The company recently reported earnings, exceeding analysts’ expectations with $0.18 EPS and $204.68 million in revenue, marking a 19.6% increase compared to the same quarter last year.

Freshworks (NASDAQ:FRSH - Get Free Report) had its target price lowered by research analysts at Morgan Stanley from $18.00 to $16.00 in a report released on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's target price indicates a potential upside of 25.79% from the stock's current price.

Several other analysts also recently weighed in on FRSH. Piper Sandler boosted their price target on Freshworks from $22.00 to $25.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. JMP Securities restated a "market outperform" rating and issued a $27.00 target price on shares of Freshworks in a research note on Friday, September 12th. Needham & Company LLC restated a "buy" rating and issued a $25.00 target price on shares of Freshworks in a research note on Friday, September 12th. Wall Street Zen downgraded Freshworks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd. Finally, Cantor Fitzgerald upgraded Freshworks to an "overweight" rating and set a $20.00 target price on the stock in a research note on Tuesday, June 3rd. Eight equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $20.00.

Freshworks Stock Performance

FRSH stock traded up $0.16 on Friday, hitting $12.72. 3,448,715 shares of the company's stock were exchanged, compared to its average volume of 3,770,333. Freshworks has a 12-month low of $10.81 and a 12-month high of $19.77. The firm has a 50 day moving average price of $13.47 and a two-hundred day moving average price of $14.23. The stock has a market cap of $3.71 billion, a P/E ratio of -70.66 and a beta of 0.94.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.06. The business had revenue of $204.68 million for the quarter, compared to the consensus estimate of $198.85 million. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%.The company's quarterly revenue was up 19.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.08 EPS. Freshworks has set its FY 2025 guidance at 0.560-0.580 EPS. Q3 2025 guidance at 0.120-0.140 EPS. Sell-side analysts expect that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In other Freshworks news, Director Zachary Nelson sold 8,433 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $13.14, for a total transaction of $110,809.62. Following the completion of the transaction, the director owned 38,870 shares of the company's stock, valued at $510,751.80. This represents a 17.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Barry L. Padgett sold 7,558 shares of the stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $15.14, for a total value of $114,428.12. Following the transaction, the director directly owned 32,635 shares of the company's stock, valued at $494,093.90. The trade was a 18.80% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 81,771 shares of company stock valued at $1,139,991. 11.17% of the stock is owned by insiders.

Institutional Investors Weigh In On Freshworks

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its holdings in shares of Freshworks by 4.5% in the first quarter. Vanguard Group Inc. now owns 26,189,892 shares of the company's stock valued at $369,539,000 after purchasing an additional 1,126,013 shares during the last quarter. Eminence Capital LP increased its holdings in shares of Freshworks by 39.4% in the second quarter. Eminence Capital LP now owns 7,334,601 shares of the company's stock valued at $109,359,000 after purchasing an additional 2,074,641 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Freshworks by 1.6% in the second quarter. Geode Capital Management LLC now owns 4,856,163 shares of the company's stock valued at $72,414,000 after purchasing an additional 75,688 shares during the last quarter. State Street Corp increased its holdings in shares of Freshworks by 2.1% in the second quarter. State Street Corp now owns 4,850,487 shares of the company's stock valued at $72,321,000 after purchasing an additional 101,132 shares during the last quarter. Finally, TPG GP A LLC increased its holdings in shares of Freshworks by 28.7% in the fourth quarter. TPG GP A LLC now owns 4,346,855 shares of the company's stock valued at $70,289,000 after purchasing an additional 969,283 shares during the last quarter. Institutional investors and hedge funds own 75.58% of the company's stock.

Freshworks Company Profile

Freshworks Inc, a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels.