As previously reported, Wells Fargo downgraded Freshworks (FRSH) to Underweight from Equal Weight with a price target of $13, down from $16. The firm believes Freshservice has its place in mid-market ITSM, but a rapidly expanding competitive landscape and the smallest R&D allocation of the key competitors make it unfavorably positioned. Further, Wells expects Freshworks to miss its 2026 growth targets for both total revs and ITSM, now stretched too thin across too broad of a product set, with further ITSM deceleration towards market growth.
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