Freshworks (FRSH) Gains Momentum as Oppenheimer Reiterates Outperform Rating with $19 Price Target

Freshworks Inc. (NASDAQ:FRSH) is a software development company that provides software-as-a-service products. Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on the stock with a $19.00 price target after a webinar and investor meetings with the company's CFO. The firm recommends Freshworks to investors seeking exposure to artificial intelligence. However, certain AI stocks offer greater upside potential and carry less downside risk.

Freshworks Inc. (NASDAQ: FRSH), a software development company specializing in software-as-a-service (SaaS) products, has garnered renewed attention from analysts following a recent webinar and investor meetings with the company's CFO, Tyler Sloat [2]. Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on the stock with a $19.00 price target, recommending Freshworks to investors seeking exposure to artificial intelligence (AI) [2]. Despite this positive outlook, certain AI stocks are seen as offering greater upside potential and carrying less downside risk.

Freshworks offers a suite of products including Freshdesk, Freshservice, Freshsales, Freshmarketer, and Freshteam. Founded in 2010 by Rathna Girish Mathrubootham and Shanmugam Krishnasamy, the company is headquartered in San Mateo, CA [1]. Oppenheimer's recommendation comes after Sloat's participation in the 28th Annual Technology, Internet, and Communications Conference, where discussions centered on market opportunities, AI momentum, and competitive positioning [2].

However, Freshworks faces competition from other AI-focused companies. Analysts have noted that while FRSH is a solid investment, other AI stocks may offer more significant growth opportunities with less risk. For instance, Nvidia (NASDAQ: NVDA) has 95% of its stock portfolio invested in CoreWeave and Arm, two companies benefiting from growing demand for AI infrastructure [3]. CoreWeave, recognized as the best AI cloud platform, reported a 206% revenue increase in the second quarter, but its net loss widened due to interest payments [3]. Arm, which designs CPU architectures, has seen a 14-fold increase in enterprises running AI workloads on its chips, but it missed sales estimates in the latest quarter [3].

Investors should be cautious when considering Freshworks or any AI stock. While FRSH has potential, the market's volatility and the high dependency on a single customer (Microsoft) for CoreWeave could pose risks. Analysts recommend a cautious approach, suggesting that patient investors could buy a very small position in CoreWeave or Arm today [3].

Institutional ownership of Freshworks has risen to 75.58%, with several institutional investors increasing or starting new positions [4]. Analysts have a consensus rating of Moderate Buy with a price target of $20.29, indicating potential for growth despite recent fluctuations in stock price [4]. Freshworks' recent performance and analyst recommendations suggest that it remains a strong contender in the AI space, but investors should weigh the risks and opportunities carefully.

References:
[1] https://www.cnn.com/markets/stocks/FRSH
[2] https://finance.yahoo.com/news/why-investors-turning-freshworks-frsh-100438755.html
[3] https://finance.yahoo.com/news/nvidia-95-portfolio-invested-2-075500473.html
[4] https://www.marketbeat.com/instant-alerts/filing-dalton-investments-inc-sells-25500-shares-of-freshworks-inc-nasdaqfrsh-2025-08-11/