Freshworks price target raised to $25 from $22 at Piper Sandler

Piper Sandler raised the firm’s price target on Freshworks (FRSH) to $25 from $22 and keeps an Overweight rating on the shares. The firm says the company exceeded Rule of 40 on Q2 upside driven by a 27% free cash flow margin. While investors remain skeptical and sentiment remains negative across the small-cap SaaS cohort that has declined 15% on average year-to-date, Freshworks is quietly executing on a plan to create an efficient and durable growth model alongside a promising new suite of AI products that grew triple-digits to $20M ARR this quarter, Piper says.