Morgan Stanley Reduces PT on Freshworks (FRSH) Stock

Core Insights - Freshworks Inc. (NASDAQ:FRSH) is identified as an oversold software stock with potential for investment [1] - Morgan Stanley has reduced the price target for Freshworks from $18 to $16 while maintaining an "Equal Weight" rating, citing peer multiple compression despite minimal forecast changes [1] - The company's recent analyst day highlighted its unique position as an uncomplicated, AI-native service platform that bridges the gap between lightweight solutions and complex platforms [1] Financial Performance - Freshworks reported Q2 2025 results showing an 18% year-over-year revenue growth, reaching $204.7 million [2] - The adjusted free cash flow margin for the quarter was 27% [2] - The number of customers contributing over $5,000 in annual recurring revenue (ARR) increased by 10% year-over-year, totaling 23,975 customers [2] Market Position - Freshworks is recognized for its ability to reduce complexity for businesses, maintaining strong momentum through the first half of 2025 [2] - While Freshworks shows potential, there are suggestions that other AI stocks may offer greater upside potential with less downside risk [3]