Freshworks Becomes A Top Pick For 2024 On Improving Demand Trends, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Needham analyst Scot Berg has reiterated a Buy rating on Freshworks Inc (NASDAQ:FRSH) and increased the price target from $25 to $30, citing stable-to-improving demand trends, especially from larger customers. Berg anticipates a 300 basis points expansion in FY24 operating margin and has raised FY24 revenue and EPS estimates. Freshworks is now a top pick for 2024 in the Enterprise Software sector and has been added to the Needham Conviction List. FRSH shares saw a slight increase of 0.93% to $23.95.
December 28, 2023 | 6:42 pm
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Needham analyst Scot Berg has upgraded the price target for Freshworks Inc to $30 and reaffirmed a Buy rating, expecting revenue growth re-acceleration and margin expansion in FY24. FRSH has also been added to the Needham Conviction List.
The positive outlook from the analyst, including the raised price target and addition to the Conviction List, suggests a strong vote of confidence in Freshworks' future performance. This is likely to be viewed favorably by investors, potentially leading to a short-term increase in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100