Price Hikes Leads to Optimism Around Freshworks (FRSH)

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Freshworks Inc. (NASDAQ:FRSH) is one of the best software application stocks to buy according to Hedge Funds.

Ryan MacWilliams from Wells Fargo reaffirmed his Equal Weight rating on Freshworks Inc. (NASDAQ:FRSH). The analyst set a target price of $13 on January 9, implying an upside of almost 15% for investors.

The analyst highlighted recent price hikes to the company’s Freshdesk plans, which led to double-digit percentage price increments across all tiers. In line with extra features in the Freshdesk product line, these price revisions could generate 3% additional growth for the business in FY26.

On December 15, Needham also maintained its bullish sentiment towards Freshworks Inc. (NASDAQ:FRSH). The firm assigned a Buy rating with a target price of $25, leading to a 121% upside potential.

Needham noted a strong demand during 2025 for their IT service management platform, Freshservice. The platform is being highly favored given its user-friendly features, competitive pricing, and strong adoption in up-market segments.

On the other hand, there was a more modest but stable demand for customer service software, Freshdesk. As per Needham’s analysis, early adoption of Freddy AI for both platforms will offer automation benefits as well as a competitive edge.

Freshworks Inc. (NASDAQ:FRSH) is a software developer that offers cloud-based SaaS solutions worldwide. With a focus on user-friendly AI-enabled solutions for customers, they deliver IT service management, customer experience, and sales & marketing. They cater to diverse organizational clients ranging from early-stage companies to large enterprises.

While we acknowledge the risk and potential of FRSH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FRSH and that has 10,000% 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.