Strategic Expansion and New Partnerships Poised to Drive Freshworks’ Growth

Needham analyst Scott Berg reiterated a Buy rating on Freshworks (FRSH – Research Report) today and set a price target of $25.00.

Scott Berg’s rating is based on Freshworks’ strategic expansion into new Enterprise Service Management (ESM) areas, which are anticipated to drive future growth. The company is making a significant push into departments such as HR, legal, and finance, with a particular emphasis on HR, which is projected to potentially become a $100 million product over time. This projection is deemed achievable given the company’s past success with its IT Service Management (ITSM) product.
Additionally, the company’s ongoing initiatives, such as the Device42 re-platforming, are progressing as planned. Freshworks’ management is also focusing on broadening its platform for small and medium-sized business customer experience solutions, including Freshcaller. Furthermore, there is enthusiasm surrounding the new Managed Service Provider (MSP) partnership, which is expected to contribute positively to the company’s growth trajectory.