Freshworks looks ‘underappreciated and undervalued,’ says Piper Sandler

Piper Sandler analyst Brent Bracelin views Freshworks as "underappreciated and undervalued" at an enterprise valuation of $3.7B and with a "large" $1.1B net cash position. Freshworks has an attractive 82% gross margin model with recurring subscription revenue that is pivoting to profitability this year, the analyst tells investors in a research note. The firm believes new leadership and an untapped cross-sell opportunity across five core products could double the company’s revenue to $1.1B by 2026. It reiterates an Overweight rating on the shares with a $20 price target.