Street Calls of the Week
Investing.com - JMP Securities has reiterated its Market Outperform rating and $27.00 price target on Freshworks Inc (NASDAQ:FRSH) following the company’s Investor Day. According to InvestingPro data, the company maintains impressive gross profit margins of 84.6% and has seen 4 analysts revise their earnings upward for the upcoming period.
The Investor Day event was held at the Omni Berkshire Hotel in San Francisco on Thursday, according to JMP.
The stock closed down approximately 1% in regular trading following the event, JMP noted in its analysis.
JMP pointed out that Freshworks shares have declined 14% year-to-date, underperforming compared to the Russell 3000 index, which has increased by 8% during the same period.
The firm maintained its positive outlook on the software company despite the recent stock performance, keeping both its rating and price target unchanged. For deeper insights into Freshworks’ valuation and growth prospects, including 8 additional key ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Freshworks Inc . reported strong second-quarter results, with non-GAAP earnings per share of $0.18, surpassing the consensus estimate of $0.11. The company achieved a 21.9% operating margin, reflecting its robust financial performance. Piper Sandler raised its price target for Freshworks to $25.00, citing the company’s growth driven by a 27% free cash flow margin, which exceeded the company’s guidance. Cantor Fitzgerald maintained its Overweight rating, noting a "solid beat and raise" performance, with the Employee Experience business growing 22% year-over-year. The Customer Experience segment also showed improvement, with growth accelerating to 8% in constant currency. Needham reiterated a Buy rating, highlighting better-than-expected billings and an increase in the Annual Recurring Revenue growth rate in the Customer Experience segment. JMP Securities reiterated its Market Outperform rating, setting a price target of $27.00 following the strong Q2 results. Oppenheimer also reiterated an Outperform rating, maintaining a $19.00 price target after discussions with the company’s CFO. These developments reflect Freshworks’ ongoing momentum and market positioning.
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