Freshworks, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Scott Berg from Needham reiterated a Buy rating on the stock and has a $25.00 price target.
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Scott Berg has given his Buy rating due to a combination of factors, primarily driven by Freshworks’ robust financial performance in the third quarter. The company has shown a modest yet significant revenue outperformance, largely attributed to its strong IT Service Management (ITSM) capabilities and notable wins in the Device42 segment, including the largest deal in its history. Additionally, the early-stage Enterprise Service Platform (ESP) segment is contributing positively to the company’s growth.
Freshworks is also capitalizing on its position as an early adopter of AI technologies, with its Freddy AI revenues growing at an impressive 100% year-over-year rate in the third quarter. The management’s confidence is reflected in their decision to increase go-to-market efforts in the fourth quarter, driven by stronger-than-expected demand trends. Furthermore, the company has reiterated its fiscal year 2026 revenue guidance, with an optimistic margin outlook that exceeds current expectations, supporting the Buy rating as the company aligns with its growth acceleration plans into FY26.
In another report released today, Oppenheimer also reiterated a Buy rating on the stock with a $19.00 price target.