Baird Lowers Freshworks (FRSH) PT to $16, Maintains Neutral Rating

Freshworks Inc. (NASDAQ:FRSH) is one of the best enterprise software stocks to buy according to analysts. On September 15, Baird lowered the firm’s price target on Freshworks to $16 from $18, while keeping a Neutral rating on the shares. This sentiment was posted ahead of the company’s Q3 2025 earnings report.

Freshworks’ revenue reached $204.7 million in Q2 2025, which was an 18% year-over-year increase. Profitability metrics also saw significant improvement, with the non-GAAP operating margin expanding to 22% and the adjusted free cash flow margin standing at a robust 27%. The company ended the quarter with ~$926 million in cash, cash equivalents, and marketable securities.

Baird Lowers Freshworks (FRSH) PT to $16, Maintains Neutral Rating

The company’s two main segments showed solid growth, particularly the Employee Experience/EX business, which achieved over $450 million in ARR, which was a 24% year-over-year increase. The Customer Experience/CX business’s ARR exceeded $380 million, which grew 11%. The customer base grew to over 74.6K, including major new customers like Seagate and AEP Energy. Customers contributing over $5,000 in ARR totaled 23,975, which was a 10% growth.

Freshworks Inc. (NASDAQ:FRSH) is a software development company that provides SaaS products in North America, Europe, the Middle East, Africa, Asia Pacific, and internationally.

While we acknowledge the potential of FRSH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FRSH and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.