Leading provider of modern Software as a service (SaaS) solutions Freshworks Inc. (FRSH) announced that it has settled the litigation filed by Indian multinational technology company Zoho Corporation Pvt. Ltd.
FRSH said that its former sales employee illegally accessed Zoho’s confidential information relating to sales leads for personal use.
The lawsuit was filed in March 2020 in a federal court in California accusing Freshworks of trade secret misappropriation. Zoho had said that Freshworks violated the Defense of Trade Secrets Act, the California Uniform Trade Secrets Act, and indulged in intentional interference with prospective economic relations, conversion and unjust enrichment.
Freshworks has also informed that it plans to take remedial measures to keep the incident from repeating itself. Zoho has agreed to dismiss the lawsuit.
Wall Street’s Take
Last month, Needham analyst Scott Berg reiterated a Buy rating on Freshworks with a price target of $58 (implying 107.6% upside potential).
Berg noted, “Freshworks’ development velocity and ability to rapidly iterate and launch new functionality is a key differentiator vs. its competitors, in our view, and this was further reinforced in our customer conversations and product demos.”
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 8 Buys and 5 Holds. Freshworks price target of $49.83 implies 78.4% upside potential to current levels.
Positive Investors Sentiments
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Freshworks, with 12% of investors increasing their exposure to FRSH stock over the past 30 days.
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