Morgan Stanley Reduces PT on Freshworks (FRSH) Stock

Freshworks Inc. (NASDAQ:FRSH) is one of the Oversold Software Stocks to Buy Now. On September 12, Morgan Stanley reduced the price target on the company’s stock to $16 from $18, while keeping an “Equal Weight” rating, as reported by The Fly. As per the analyst, Freshworks Inc. (NASDAQ:FRSH)’s analyst day showcased its unique positioning to fill the gap between unscalable, lightweight point solutions and complex, expensive platform providers as an uncomplicated, AI-native service platform. That being said, peer multiple compression reduces the price objective even though there are minimal forecast changes after that event, noted the analyst.

Morgan Stanley Reduces PT on Freshworks (FRSH) Stock

Elsewhere, Freshworks Inc. (NASDAQ:FRSH) released Q2 2025 results, with 18% YoY revenue growth to $204.7 million and 27% adjusted free cash flow margin. The number of customers contributing over $5,000 in ARR was 23,975, reflecting a rise of 10% YoY and 9% adjusting for the constant currency. The strong momentum through H1 2025 demonstrates that the company remains the preferred choice for businesses to reduce complexity.

Freshworks Inc. (NASDAQ:FRSH), a software development company, offers software-as-a-service products.

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.