
Freshworks (FRSH) Stock Forecast & Price Target
Freshworks (FRSH) Analyst Ratings
Bulls say
Freshworks Inc. demonstrates a positive outlook due to its significant growth in annual recurring revenue (ARR), with the EX segment reaching over $480 million and achieving a year-over-year growth rate of 23%. The company's AI ARR has also doubled from the previous year, driven by strong adoption of its Copilot, contributing to a potential for sustained growth in the enterprise software market. Additionally, improvements in net revenue retention (NRR) from 104% to 106% and a 14% reduction in churn highlight strong customer satisfaction and retention, further solidifying the company's financial health and market position.
Bears say
Freshworks Inc faces substantial challenges due to intense pricing pressures in a highly competitive market, which could erode its profitability if the company fails to maintain its pricing power. The company also grapples with significant risks related to its operations in India, where economic and regulatory uncertainties may negatively impact performance, alongside fierce competition from established players such as Salesforce and Zendesk. Additionally, concerns regarding the potential impact of a security breach and the company's ability to successfully execute its go-to-market strategies for new products may hinder future growth prospects, leading to a revised price target of $20 based on lower estimates.
This aggregate rating is based on analysts' research of Freshworks and is not a guaranteed prediction by Public.com or investment advice.
Freshworks (FRSH) Analyst Forecast & Price Prediction
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