Freshworks (FRSH – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Scott Berg from Needham maintained a Buy rating on the stock and has a $25.00 price target.
Scott Berg’s rating is based on Freshworks’ exceptional quarterly performance, which is considered one of its best in recent years. The company has shown significant growth in customer acquisition, particularly in its Employee Experience (EX) vertical, supported by the strong adoption of Device42. Additionally, the introduction of new Enterprise Service Management (ESM) solutions has contributed positively to the company’s revenue growth.
Freshworks’ strategy of converting free users to paid customers has been successful, leading to a substantial increase in larger customer acquisitions both year-over-year and quarter-over-quarter. The momentum in the Freddy portfolio, with a notable number of Copilot and AI Agent customers, further underscores the company’s potential for continued growth. The anticipated release of additional Freddy products is expected to drive further adoption, enhance customer acquisition metrics, and increase average revenue per user (ARPU), positioning Freshworks to exceed its fiscal year 2025 guidance.
Berg covers the Technology sector, focusing on stocks such as Salesforce, SPS Commerce, and Workday. According to TipRanks, Berg has an average return of -9.6% and a 34.27% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $22.00 price target.