Strong Financial Performance and Strategic Positioning Make Freshworks a Buy

Analyst David Hynes from Canaccord Genuity maintained a Buy rating on Freshworks (FRSH – Research Report) and keeping the price target at $23.00.

David Hynes has given his Buy rating due to a combination of factors that highlight Freshworks’ strong financial performance and strategic positioning. The company reported impressive first-quarter results, surpassing revenue expectations and demonstrating significant improvement in operating margins. Freshworks’ calculated billings and net revenue retention rates remained robust, indicating a stable customer base and consistent growth.
Moreover, Freshworks’ strategic initiatives, such as expanding its AI capabilities and maintaining momentum in its Employee Experience business, are contributing to its competitive edge. The company’s ability to attract and retain high-value customers, along with its proactive stock repurchase program, further supports its financial health. These factors, combined with a positive outlook for 2025, underpin Hynes’s confidence in Freshworks’ potential for continued growth, making the stock an attractive investment opportunity.

In another report released today, Jefferies also maintained a Buy rating on the stock with a $20.00 price target.

FRSH’s price has also changed moderately for the past six months – from $11.790 to $14.340, which is a 21.63% increase.