UPDATE: Needham & Company Starts Freshworks Inc (FRSH) at Buy

Needham & Company analyst Scott Berg initiates coverage on Freshworks Inc (NASDAQ: FRSH) with a Buy rating and a price target of $50.00.

The analyst comments "We initiate coverage of FRSH with a Buy rating and $50 PT. We believe the Freshworks fundamental investment thesis is a strong confluence of what investors seek for durable market outperformance: a large TAM, dominant product functionality to drive durable growth, and a modern technology architecture to fend off larger legacy vendors. Although FRSH competes in what some consider mature product segments, we believe its large TAM offers a strong growth proposition, especially versus less agile legacy vendors that are no longer innovation leaders. The strong metrics linked to the company's recent GTM expansion efforts give us confidence in our intermediate-term revenue growth expectations. Our $50 PT reflects a premium multiple at 31x EV/revenue on our FY22 estimate, which we believe is in line with similar hyper-growth SaaS peers."

For an analyst ratings summary and ratings history on Freshworks Inc click here. For more ratings news on Freshworks Inc click here.

Shares of Freshworks Inc closed at $41.45 yesterday.

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