Freshworks slips even as Baird positive after AI-focused launch event
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Freshworks (NASDAQ:FRSH) shares slipped nearly 1.5% on Friday even as investment firm Baird was positive on the company's Launch event, where the company focused on artificial intelligence.
"Overall, we came away positive on FRSH's AI strategy and products," analyst Rob Oliver wrote in an investor note. "Service, Sales, and Marketing are areas where we see ample opportunity for Generative AI to deliver rapid productivity enhancements."
Oliver, who has an outperform rating and per-share price target of $18 on Freshworks (FRSH), added that the company's 65,000 customers and "large" total addressable market leaves the company as "well positioned" to further enhance its products for small and medium-sized business customers.
At the Launch event, Freshworks (FRSH) primarily focused on generative Ai advancements, including a new partnership with Microsoft's (MSFT) OpenAI service for its Freddy product, with plans to eventually invest in custom-tailored large language models.
Other updates were focused on Freddy, including Freddy Self Service, Freddy Copilot and Freddy Insights.
Analysts are largely bullish on Freshworks (FRSH). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates FRSH a HOLD.
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