Freshworks stock rating reiterated by Cantor Fitzgerald on AI innovation

Published 13/06/2025, 13:00
Freshworks stock rating reiterated by Cantor Fitzgerald on AI innovation

Cantor Fitzgerald maintained its Overweight rating and $20.00 price target on Freshworks Inc (NASDAQ:FRSH) following the company’s REFRESH virtual event held Thursday. According to InvestingPro data, analysts’ targets range from $12 to $27, with the company currently trading at $15.66 and showing signs of being undervalued based on Fair Value analysis.

The research firm highlighted Freshworks’ focus on Freddy AI Agents in both its Freshservice and Freshdesk products, noting the technology is advancing "beyond providing answers to taking action and working autonomously to resolve problems."

Cantor Fitzgerald expressed positive sentiment about Freshworks’ innovation efforts, stating the company is "taking the right steps to improve their positioning in Freshservice, as well as to reinvigorate growth for Freshdesk."

The firm pointed to Freshworks’ current valuation at 5x and 25x their FY26 estimated revenue and EPS, respectively, as creating a favorable risk/reward scenario for investors.

Freshworks, which provides customer and employee engagement software solutions, continues to emphasize artificial intelligence capabilities as a core component of its product development strategy.

In other recent news, Freshworks Inc. reported robust financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved non-GAAP earnings per share of $0.18, exceeding the consensus estimate of $0.13, alongside revenue of $196 million, which also surpassed the anticipated $192 million. This represents a year-over-year revenue increase of 19%. Freshworks’ billings for the quarter reached $203 million, again beating the consensus estimate of $198 million and marking a 16% year-over-year increase. In analyst updates, Cantor Fitzgerald initiated coverage of Freshworks with an Overweight rating and a price target of $20, noting the company’s growth potential and customer experience enhancements. Meanwhile, Scotiabank (TSX:BNS) raised its price target for Freshworks to $18, maintaining a Sector Perform rating, citing steady billings growth and a slight upward revision in revenue forecasts for fiscal year 2025. Freshworks’ strong performance, particularly in its Experience segment, continues to attract investor interest, supported by its strategic focus on AI innovation and market expansion.

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