Freshworks price target raised to $22 from $19 at UBS

UBS analyst Taylor McGinnis raised the firm’s price target on Freshworks (FRSH) to $22 from $19 and keeps a Buy rating on the shares. Feedback on Freshworks demand continues to be a “tale of two cities,” consistent with previous partner checks, where Freshservice deal activity appears to remain robust while Freshdesk is pressured, the analyst tells investors in a research note. The firm says two partners with more Freshservice exposure suggested that Q4 was in-line or exceeded expectations and that the pipeline for FY25 is strong, while the bigger Freshdesk partner said Q4 was soft and seemed more cautious on FY25. UBS is “worried” a bit about the Q4 earnings set-up given recent foreign exchange moves and Q4 organic billings growth guidance that implies modest acceleration.