Expert Outlook: Freshworks Through The Eyes Of 11 Analysts
11 analysts have shared their evaluations of Freshworks (NASDAQ:FRSH) during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 4 | 4 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 2 | 3 | 4 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Freshworks, presenting an average target of $21.82, a high estimate of $30.00, and a low estimate of $15.00. Highlighting a 14.03% decrease, the current average has fallen from the previous average price target of $25.38.
Understanding Analyst Ratings: A Comprehensive Breakdown
The analysis of recent analyst actions sheds light on the perception of Freshworks by financial experts. 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 |
|---|---|---|---|---|---|
| Scott Berg | Needham | Maintains | Buy | $30.00 | - |
| David Hynes | Canaccord Genuity | Lowers | Buy | $20.00 | $27.00 |
| Raimo Lenschow | Barclays | Lowers | Equal-Weight | $15.00 | $20.00 |
| 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 |
| Scott Berg | Needham | Maintains | Buy | $30.00 | - |
| Rob Oliver | Baird | Lowers | Neutral | $16.00 | $28.00 |
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $22.00 | $24.00 |
| Alex Zukin | Wolfe Research | Announces | Outperform | $27.00 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Freshworks. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey 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.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Freshworks's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Freshworks analyst ratings.
About Freshworks
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.
Financial Milestones: Freshworks's Journey
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Freshworks's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 20.23%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: Freshworks's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -17.54%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Freshworks's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.64%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Freshworks's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.95%, the company may face hurdles in generating optimal 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 0.03.
How Are Analyst Ratings Determined?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.