The Analyst Verdict: Freshworks In The Eyes Of 13 Experts
Providing a diverse range of perspectives from bullish to bearish, 13 analysts have published ratings on Freshworks (NASDAQ:FRSH) in the last three months.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 4 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 3 | 3 | 4 | 0 | 0 |
Analysts have recently evaluated Freshworks and provided 12-month price targets. The average target is $20.54, accompanied by a high estimate of $30.00 and a low estimate of $15.00. This current average represents a 20.29% decrease from the previous average price target of $25.77.
Analyzing Analyst Ratings: A Detailed Breakdown
The perception of Freshworks by financial experts is analyzed through recent analyst actions. The following summary presents 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 Bracelin | Piper Sandler | Lowers | Overweight | $17.00 | $22.00 |
| David Hynes | Canaccord Genuity | Lowers | Buy | $17.00 | $20.00 |
| Scott Berg | Needham | Lowers | Buy | $20.00 | $30.00 |
| Scott Berg | Needham | Maintains | Buy | $30.00 | $30.00 |
| David Hynes | Canaccord Genuity | Lowers | Buy | $20.00 | $27.00 |
| Raimo Lenschow | Barclays | Lowers | Equal-Weight | $15.00 | $20.00 |
| Scott Berg | Needham | Maintains | Buy | $30.00 | $30.00 |
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $18.00 | $22.00 |
| Patrick Walravens | JMP Securities | Lowers | Market Outperform | $21.00 | $29.00 |
| Brett Knoblauch | Cantor Fitzgerald | Lowers | Overweight | $19.00 | $25.00 |
| Brent Bracelin | Piper Sandler | Lowers | Overweight | $22.00 | $28.00 |
| Rob Oliver | Baird | Lowers | Neutral | $16.00 | $28.00 |
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $22.00 | $24.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Freshworks. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Freshworks compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Freshworks's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Freshworks's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Freshworks analyst ratings.
Get to Know Freshworks Better
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.
Freshworks's Financial Performance
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Freshworks's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 19.94%. This signifies 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 is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -14.12%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -2.17%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Freshworks's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.6%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Freshworks's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.02.
Analyst Ratings: Simplified
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
This article was generated by Benzinga's automated content engine and reviewed by an editor.