Piper Sandler Maintains Overweight on Freshworks, Lowers Price Target to $22
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 02 2024
0mins
Should l Buy FRSH?
Source: Benzinga
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FRSH?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FRSH
Wall Street analysts forecast FRSH stock price to rise
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 8.420
Low
13.00
Averages
18.88
High
25.00
Current: 8.420
Low
13.00
Averages
18.88
High
25.00
About FRSH
Freshworks Inc. provides people-first AI service software that organizations use to deliver employee and customer experience. The Company's employee experience (EX) products include Freshservice, Freshservice for Business Teams, Device42 and FireHydrant. Its customer experience (CX) products include its Freshdesk suite of products. Its AI offerings include Freddy AI Agents, Freddy AI Copilot, and Freddy AI Insights. Freshservice is its unified IT and enterprise service management platform that brings together IT Service Management, IT Operations Management, and IT Infrastructure Management. Freshservice for Business Teams extends these capabilities to departments such as HR, Facilities, Finance, and Legal and can be used independently by individual business units. Device42 adds advanced discovery, inventory, and dependency mapping across complex IT environments. FireHydrant unifies alerting, on-call coordination, major-incident response, and post-incident analytics in a single system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysts See Buyback Potential for Software Firms
- Increased Buyback Programs: Analysts at Needham highlight that enterprise software companies like Zoom, Freshworks, and monday.com could see significant growth in free cash flow per share if they executed larger stock buybacks, particularly given current market valuations.
- Market Sentiment Impact: While current market sentiment may limit the immediate impact on free cash flow per share growth in the software sector, analysts believe that if the value of the software layer persists towards the end of the cycle, these buybacks could drive financially engineered share price gains.
- Cash Reserve Advantage: Among the companies covered by Needham, monday.com, Freshworks, and CS Disco have the highest percentage of net cash relative to their market caps, indicating their flexibility in capital management to leverage this for buybacks.
- Potential Growth Opportunities: Analysts suggest that if these six companies increase their buyback sizes, it could lead to meaningful free cash flow per share growth, providing long-term stock price benefits for investors.
See More
Oppenheimer Downgrades Freshworks Amid AI Disruption Risks
- Rating Downgrade: Oppenheimer has downgraded Freshworks (FRSH) from Outperform to Perform and removed its $15 price target, reflecting concerns over the software sector's vulnerability to AI disruption, which may lead to decreased investor confidence in the company.
- Market Selection: Analyst Brian Schwartz emphasized that investors need a finer filter to identify companies that can sustain growth in the AI future, with Oppenheimer favoring Oracle (ORCL), Microsoft (MSFT), and Agilysys (AGYS), while Freshworks is identified as a name to avoid, indicating its market fragility.
- Industry Outlook: Analysts believe the software sector will experience structural divergence, with companies scoring well in AI defensibility likely to sustain or improve growth rates, and Freshworks' downgrade may negatively impact its future market performance.
- Profit Expectations: While large-cap software firms are expected to achieve healthy margin growth over the next two years, Freshworks and monday.com (MNDY) are projected to have flat-to-down operating margins, suggesting a competitive disadvantage that could affect their investment appeal.
See More
Freshworks Executive Sells Shares Amid Growth Strategy
- Executive Share Sale: Freshworks' Chief Integrated Customer Growth Officer, Mika Yamamoto, sold 32,577 shares of common stock for approximately $275,000, marking the largest single direct sale in her trading history, indicating her responsiveness to market dynamics.
- Holding Proportion Analysis: The sale represented 2.81% of her direct holdings, significantly higher than the historical median of 0.30%, reflecting an increase in trade size and available shares, which may impact investor confidence.
- Company Financial Outlook: Freshworks projects 2026 revenue to range between $952 million and $960 million, representing a 16% growth from 2025's $838.8 million, showcasing the company's ongoing expansion potential in customer engagement and IT service management.
- Market Valuation Perspective: Despite the stock price dropping from a 52-week high of $16.48 to a low of $6.79, Freshworks' price-to-sales ratio of around 3 is at a low point for the past year, suggesting the current stock price is attractive, making it a point of interest for long-term investors.
See More
Freshworks Executive Sells 32,577 Shares Amid Growth
- Executive Share Sale: Mika Yamamoto sold 32,577 shares on March 4, 2026, for approximately $275,000, representing 2.81% of her direct holdings, reducing her ownership to 1,127,723 shares, indicating confidence in the company's future.
- Compliance with Trading Plan: The transaction was executed under a Rule 10b5-1 trading plan established in September 2025, designed to avoid insider trading allegations, showing that Yamamoto retains over one million shares, reflecting her long-term confidence in the company.
- Company Performance Growth: Freshworks projects 2026 revenue between $952 million and $960 million, a 16% increase from 2025's $838.8 million, while 2025 operating income of $13.2 million marks a significant improvement from the previous year's loss, indicating enhanced operational efficiency.
- Attractive Stock Valuation: Despite Freshworks' stock price dropping from a 52-week high of $16.48 to a low of $6.79, its price-to-sales ratio of three is at a low point for the past year, suggesting the stock is attractively valued, although analysts did not include it in their top investment picks.
See More
Freshworks Announces Leadership Changes to Accelerate Growth
- Leadership Restructuring: Freshworks has unified its global sales organization under Ian Tickle, the current Chief of Global Field Operations, aiming to accelerate growth and deliver exceptional value to its global customer base, highlighting the company's focus on enhancing sales efficiency.
- Strong Performance: Ian Tickle has played a significant role in Freshworks outperforming market expectations for the last five consecutive quarters, demonstrating his ability to drive high-impact results and further solidifying the company's market position.
- New Chief Revenue Officer: Tickle will assume the role of Chief Revenue Officer immediately, overseeing all sales, customer success, and customer experience functions, a move expected to enhance overall operational efficiency and customer satisfaction.
- Financial Outlook Reaffirmed: Freshworks achieved profitability and record free cash flow in fiscal year 2025, reaffirming its financial estimates for fiscal year 2026, indicating the company's confidence in sustained growth and financial health.
See More
Freshworks Announces $400 Million Stock Buyback Program
- Stock Buyback Program: Freshworks has announced a stock repurchase program of up to $400 million for its Class A common stock, aimed at enhancing shareholder value and boosting market confidence, which is expected to have a positive impact on the stock price.
- Positive Market Reaction: Following the announcement, Freshworks' stock rose 4.94% in premarket trading to $7.64 per share, indicating investor optimism regarding the company's future growth potential.
- Clear Growth Targets: Freshworks has set a target to achieve $1.3 billion in annual recurring revenue (ARR) by 2028, demonstrating its strategic focus on sustained growth through its EX platform and AI initiatives.
- Industry Context Analysis: Despite facing downgrades from Jefferies and concerns over AI, Freshworks showcases resilience and long-term growth potential in the SaaS market through its buyback program and ambitious growth targets.
See More
Analysts See Buyback Potential for Software Firms
- Increased Buyback Programs: Analysts at Needham highlight that enterprise software companies like Zoom, Freshworks, and monday.com could see significant growth in free cash flow per share if they executed larger stock buybacks, particularly given current market valuations.
- Market Sentiment Impact: While current market sentiment may limit the immediate impact on free cash flow per share growth in the software sector, analysts believe that if the value of the software layer persists towards the end of the cycle, these buybacks could drive financially engineered share price gains.
- Cash Reserve Advantage: Among the companies covered by Needham, monday.com, Freshworks, and CS Disco have the highest percentage of net cash relative to their market caps, indicating their flexibility in capital management to leverage this for buybacks.
- Potential Growth Opportunities: Analysts suggest that if these six companies increase their buyback sizes, it could lead to meaningful free cash flow per share growth, providing long-term stock price benefits for investors.
See More
Oppenheimer Downgrades Freshworks Amid AI Disruption Risks
- Rating Downgrade: Oppenheimer has downgraded Freshworks (FRSH) from Outperform to Perform and removed its $15 price target, reflecting concerns over the software sector's vulnerability to AI disruption, which may lead to decreased investor confidence in the company.
- Market Selection: Analyst Brian Schwartz emphasized that investors need a finer filter to identify companies that can sustain growth in the AI future, with Oppenheimer favoring Oracle (ORCL), Microsoft (MSFT), and Agilysys (AGYS), while Freshworks is identified as a name to avoid, indicating its market fragility.
- Industry Outlook: Analysts believe the software sector will experience structural divergence, with companies scoring well in AI defensibility likely to sustain or improve growth rates, and Freshworks' downgrade may negatively impact its future market performance.
- Profit Expectations: While large-cap software firms are expected to achieve healthy margin growth over the next two years, Freshworks and monday.com (MNDY) are projected to have flat-to-down operating margins, suggesting a competitive disadvantage that could affect their investment appeal.
See More
Freshworks Executive Sells Shares Amid Growth Strategy
- Executive Share Sale: Freshworks' Chief Integrated Customer Growth Officer, Mika Yamamoto, sold 32,577 shares of common stock for approximately $275,000, marking the largest single direct sale in her trading history, indicating her responsiveness to market dynamics.
- Holding Proportion Analysis: The sale represented 2.81% of her direct holdings, significantly higher than the historical median of 0.30%, reflecting an increase in trade size and available shares, which may impact investor confidence.
- Company Financial Outlook: Freshworks projects 2026 revenue to range between $952 million and $960 million, representing a 16% growth from 2025's $838.8 million, showcasing the company's ongoing expansion potential in customer engagement and IT service management.
- Market Valuation Perspective: Despite the stock price dropping from a 52-week high of $16.48 to a low of $6.79, Freshworks' price-to-sales ratio of around 3 is at a low point for the past year, suggesting the current stock price is attractive, making it a point of interest for long-term investors.
See More
Freshworks Executive Sells 32,577 Shares Amid Growth
- Executive Share Sale: Mika Yamamoto sold 32,577 shares on March 4, 2026, for approximately $275,000, representing 2.81% of her direct holdings, reducing her ownership to 1,127,723 shares, indicating confidence in the company's future.
- Compliance with Trading Plan: The transaction was executed under a Rule 10b5-1 trading plan established in September 2025, designed to avoid insider trading allegations, showing that Yamamoto retains over one million shares, reflecting her long-term confidence in the company.
- Company Performance Growth: Freshworks projects 2026 revenue between $952 million and $960 million, a 16% increase from 2025's $838.8 million, while 2025 operating income of $13.2 million marks a significant improvement from the previous year's loss, indicating enhanced operational efficiency.
- Attractive Stock Valuation: Despite Freshworks' stock price dropping from a 52-week high of $16.48 to a low of $6.79, its price-to-sales ratio of three is at a low point for the past year, suggesting the stock is attractively valued, although analysts did not include it in their top investment picks.
See More
Freshworks Announces Leadership Changes to Accelerate Growth
- Leadership Restructuring: Freshworks has unified its global sales organization under Ian Tickle, the current Chief of Global Field Operations, aiming to accelerate growth and deliver exceptional value to its global customer base, highlighting the company's focus on enhancing sales efficiency.
- Strong Performance: Ian Tickle has played a significant role in Freshworks outperforming market expectations for the last five consecutive quarters, demonstrating his ability to drive high-impact results and further solidifying the company's market position.
- New Chief Revenue Officer: Tickle will assume the role of Chief Revenue Officer immediately, overseeing all sales, customer success, and customer experience functions, a move expected to enhance overall operational efficiency and customer satisfaction.
- Financial Outlook Reaffirmed: Freshworks achieved profitability and record free cash flow in fiscal year 2025, reaffirming its financial estimates for fiscal year 2026, indicating the company's confidence in sustained growth and financial health.
See More
Freshworks Announces $400 Million Stock Buyback Program
- Stock Buyback Program: Freshworks has announced a stock repurchase program of up to $400 million for its Class A common stock, aimed at enhancing shareholder value and boosting market confidence, which is expected to have a positive impact on the stock price.
- Positive Market Reaction: Following the announcement, Freshworks' stock rose 4.94% in premarket trading to $7.64 per share, indicating investor optimism regarding the company's future growth potential.
- Clear Growth Targets: Freshworks has set a target to achieve $1.3 billion in annual recurring revenue (ARR) by 2028, demonstrating its strategic focus on sustained growth through its EX platform and AI initiatives.
- Industry Context Analysis: Despite facing downgrades from Jefferies and concerns over AI, Freshworks showcases resilience and long-term growth potential in the SaaS market through its buyback program and ambitious growth targets.
See More
