8 Tech Stocks with Biggest Upside Potential According to Analysts

5) Freshworks Inc. (NASDAQ:FRSH)

Expected Upside Potential: 51.25%

Number of Hedge Fund Holders: 33

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

Wall Street analysts remain optimistic about Freshworks Inc. (NASDAQ:FRSH)’s recent strategic moves, which include the acquisition of Device42. This acquisition enhances the company’s IT asset management offerings and the implementation of its AI product, Freddy Copilot. The company’s AI product approximately doubled its customer base and ARR from the previous quarter. Freshworks Inc. (NASDAQ:FRSH) has built in $11 million for the full year from Device42, and plans to transition it to a pure cloud offering by next year’s end.

Freshworks Inc. (NASDAQ:FRSH) remains focused on driving customer adoption and usage of its AI products in a bid to deliver value and accelerate growth. The company’s IT Service Management (ITSM) product is expected to act as a key growth driver. Also, the combination of Freshworks’ ITSM offering and Device42 should enhance the overall value proposition for customers. Analysts remain optimistic about the company’s strategic priorities and expect that Freshworks Inc. (NASDAQ:FRSH) remains well-positioned to seize the massive opportunity.

For Q3 2024, the company anticipates revenue in the range of $180.0 million – $183.0 million, reflecting a YoY growth of 17% – 19%. For the same period, it expects to report non-GAAP income from operations of $13.0 million – $15.0 million. Freshworks Inc. (NASDAQ:FRSH) rolled out a new data center in the UAE, powered by Amazon Web Services (AWS). The focus is to power global expansion and support job creation and digital skills development in the region.

Needham & Company LLC reaffirmed a “Buy” rating, setting a $20.00 target price on 31^st July.

ClearBridge Investments, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:

“Software development company Freshworks Inc. (NASDAQ:FRSH), whose products include customer service, operations and customer relationship management applications, also saw its share price drift lower as investors began to worry that Freshworks was no longer an AI beneficiary, though we don’t believe this to be the case.”