Freshworks (FRSH) Sparks Confidence Based on Underlying Momentum

Core Insights - Freshworks Incorporated (NASDAQ:FRSH) is identified as one of the 12 oversold software stocks to invest in, with analysts maintaining a positive outlook despite recent price target adjustments [1][3]. Group 1: Analyst Ratings and Price Targets - Citizens analyst Patrick Walravens maintained an Outperform rating on Freshworks, reducing the price target from $27 to $16, indicating a potential upside of 121% [1]. - Piper Sandler analyst Billy Fitzsimmons lowered the price target from $12 to $10 while maintaining a Neutral rating, reflecting mixed guidance from management [3][4]. Group 2: Financial Performance and Guidance - The company reported stronger-than-anticipated fourth-quarter results and revenue forecasts, which bolstered analyst confidence in its underlying momentum [3]. - Management's guidance for 2026 showed revenue and billings outlook exceeding consensus estimates, but projections for operating margin and EPS fell below expectations [4]. Group 3: Company Overview - Freshworks is a software developer providing cloud-based SaaS solutions globally, focusing on user-friendly AI-enabled services for IT management, customer experience, and sales & marketing [5]. - The company serves a diverse range of clients, from early-stage companies to large enterprises [5].