Needham analyst Scott Berg has maintained their bullish stance on FRSH stock, giving a Buy rating today.
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Scott Berg has given his Buy rating due to a combination of factors, including Freshworks’ strong performance in the fourth quarter and the company’s promising outlook for 2025. The company saw significant stabilization in its customer experience segment, which bolstered its revenue growth, despite facing some challenges due to foreign exchange impacts that affected metrics related to larger customer additions.
Furthermore, Freshworks achieved a four-year high in net customer additions, primarily driven by successful conversions from free to paid plans. The company’s AI initiatives, particularly the strong attachment rates of Copilot in small and medium-sized businesses and large deals, along with traction in their AI Agent, are expected to contribute to substantial revenue growth by 2025. These elements, along with the stabilization in the SMB/CX sector and AI monetization, provide a solid foundation for future growth and justify the Buy rating.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $27.00 price target.