JPMorgan ups Freshworks target but ‘tactically cautious’ into earnings

JPMorgan raised the firm’s price target on Freshworks to $24 from $21 and keeps an Overweight rating on the shares. The analyst, however, is “tactically cautious” heading into Freshworks’ Q4 earnings report. Based on positive channel work, the firm expects to see upside with respect to revenue and billings for Q4, and thinks the current consensus expectations for 2024 guidance are within reach. However, Freshworks will likely continue to maintain a conservative posture with respect to guidance, with the 2024 first-blush guide and Q1 billings guide, “likely landing closer to the pin with limited upside,” the analyst tells investors in a research note. JPMorgan thinks this “creates a bit of a tricky setup for the stock.”