Piper Sandler raised the firm’s price target on Freshworks (FRSH) to $22 from $20 and keeps an Overweight rating on the shares. The firm is encouraged by another quarter of solid execution that resulted in a $5M revenue beat alongside 13c EPS upside. Q1 marked the third quarter with stable retention metrics at 105% aided by an increasing mix of middle-market and enterprise customers, and EX products accounting for 53% of sales, Piper adds. Freshworks appears undervalued and underappreciated for a multi-product cloud software platform approaching $800M ARR scale that is poised for mid-teens organic growth, $210M-plus in free cash flow, and a strong balance sheet with about $1B in cash, the firm says.
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