Analyst Patrick Walravens of JMP Securities maintained a Buy rating on Freshworks (FRSH – Research Report), with a price target of $29.00.
Patrick Walravens has given his Buy rating due to a combination of factors surrounding Freshworks’ recent performance and future prospects. The company’s fourth-quarter results surpassed expectations with a 20% year-over-year revenue increase, signaling an acceleration in growth. Moreover, the net revenue retention rate exceeded guidance, and the stock’s performance in the aftermarket showed positive investor sentiment despite a year-to-date decline. These elements, along with a revenue forecast that continues to promise growth, underpin Walravens’ optimistic outlook on Freshworks.
Furthermore, Walravens’ confidence in Freshworks is bolstered by several strategic and operational strengths. The company’s presence in three significant market segments totaling $78 billion provides a substantial addressable market. Its product-market fit and successful upmarket movement, combined with a robust leadership team, position the company well for long-term growth. Additionally, the path to profitability and the advantage of cost-efficient Indian operations contribute to the rationale behind the Buy rating. Despite a moderate guidance on operating leverage expansion, the potential for capital appreciation justifies a premium valuation compared to peers, leading to an increased price target.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $30.00 price target.
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Freshworks (FRSH) Company Description:
Freshworks Inc provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks.
Read More on FRSH:
- Freshworks Reports Fourth Quarter and Full Year 2023 Results
- Freshworks, Inc. Class A (FRSH) Q4 Earnings Cheat Sheet
- JPMorgan ups Freshworks target but ‘tactically cautious’ into earnings
- Freshworks Announces Strategic Collaboration Agreement with AWS to Increase the Reach of its AI-boosted Software-as-a-Service
- Freshworks enters collaboration agreement with AWS
