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Needham ups Freshworks target, adds to Conviction List as top 2024 pick

Needham ups Freshworks target, adds to Conviction List as top 2024 pick

Needham analyst Scott Berg raised the firm’s price target on Freshworks (FRSH) to $30 from $25 and keeps a Buy rating on the shares. The firm also added the shares to its Conviction List while removing Five9 (FIVN). Needham selected Freshworks as its top pick in enterprise software for 2024. The top pick thesis is based on Freshworks’ “steady to improving” demand trends, “predictable” margin leverage, properly set intermediate-term expectations, and 2024 consensus estimates “that appear beatable in an unpredictable macro” environment, the analyst tells investors in a research note. The firm raised its fiscal 2024 revenue and profitability estimates modestly above the consensus to reflect its bullish view.

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