Freshworks (FRSH) Stock Forecast & Price Target

Freshworks Inc. has demonstrated a positive growth trajectory, as evidenced by the consistent increase in average selling prices (ASPs) driven by larger deployments. The enterprise software sector has experienced significant valuation expansions over the past decade, particularly benefiting companies utilizing Software-as-a-Service models. Furthermore, expectations for the Experience (EX) segment to maintain over 20% growth annually for the next three years, following a robust 22% increase in Q2 2025, along with potential acceleration in IT Asset Management (ITAM) growth upon the release of a new cloud version, contribute to a favorable financial outlook for the company.

Freshworks Inc faces significant risks that could hinder its financial performance, particularly due to intense pricing pressure in a highly competitive market, which may erode profitability if the company fails to maintain its pricing power. Additionally, the company operates in well-established markets where it competes against dominant players like Salesforce and Zendesk, and faces uncertainties related to its substantial operations in India, which could further impact its growth. Moreover, challenges in executing its go-to-market strategy for new products and the potential for security breaches could adversely affect Freshworks's reputation and overall business performance.