Analysts See Opportunity in Freshworks (FRSH) Despite Market Skepticism

Freshworks Inc. (NASDAQ:FRSH) is one of the Trending AI Stocks on Wall Street. On September 12, Cantor Fitzgerald analyst Matthew VanVliet reiterated an Overweight rating on the stock with a $20.00 price target. The rating affirmation follows the company’s investors day in San Francisco.

The company has laid out a three-year growth plan projecting $1.3b of ARR in 2028, accelerating revenue growth from 2026-2028, and achieving the rule of 45.

The market is skeptical about Freshworks reaching these targets due to AI-related disruptions, but analysts have come away positive about the company’s ability to sustain 20%+ annual growth over the next three years.

“We attended FRSH’s Investor Day in SF. Mgmt provided a three-year growth framework, which calls for $1.3b of ARR in 2028, accelerating revenue growth from 2026-2028, and hitting a Rule of 45. While we think the market remains skeptical of FRSH’s ability to hit these growth targets, given AI disruption-related fears, we came away from the event reassured in EX’s ability to drive 20%+ growth over the next three years. This embedded skepticism presents an attractive entry point for the stock, in our opinion, with shares trading at just 3x and 15x our 2026 revenue and FCF estimates. With the building blocks for durable ~mid-teens growth and strong margin and FCF improvements, we reiterate our Overweight rating and $20 PT, which implies 5x and 23x our 2026 revenue and FCF estimates.”

Freshworks Inc. is a software development company that provides software-as-a-service products.

While we acknowledge the potential of FRSH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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