Freshworks (FRSH) Shifts Toward Enterprise Market as BTIG Highlights Streamlined CX and EX Portfolio

Freshworks Inc. (NASDAQ:FRSH) is one of the low priced stocks to buy with high upside potential. On December 17, BTIG initiated coverage of Freshworks with a Neutral rating, but without setting a price target on the shares. The firm observed that Freshworks spent the last few years streamlining its portfolio. By moving away from a broad SMB app stack, the company is now prioritizing its core Customer Experience/CX and Employee Experience/EX drivers while pushing into the enterprise market. While the firm views this shift positively, it also noted an increasing reliance on the EX segment for growth amid persistent concerns regarding the impact of GenAI on the broader customer support industry.

Additionally, on December 15, Freshworks announced a definitive agreement to acquire FireHydrant, which is an AI-native incident management and reliability platform. FireHydrant specializes in managing the full lifecycle of IT disruptions, offering advanced on-call management, structured response workflows, and AI-integrated retrospective analysis. The platform is currently used by major global brands, including Palo Alto Networks, BP, and Qlik.

The acquisition aims to bridge the gap between Freshservice’s IT Service Management and FireHydrant’s IT Operations Management. By merging these capabilities, Freshworks intends to create a unified AI-native ServiceOps solution. The integration is designed to provide teams with a single view of technology dependencies, reducing the manual chaos and siloed data that often lead to slow response times and financial instability during digital downtime.

The combined solution focuses on Unified Visibility, which connects service and operations management to reduce handoffs; Faster Response, which uses AI to filter alert noise and guide engineers through step-by-step resolution; and Proactive IT, which uses asset data from Freshservice and incident insights from FireHydrant to prevent recurring outages.

Freshworks Inc. (NASDAQ:FRSH) is a software development company that provides SaaS products in North America, Europe, the Middle East, Africa, Asia Pacific, and internationally.

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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Disclosure: None. This article is originally published at Insider Monkey.