Optimism Surrounds Freshworks (FRSH) Amid Favorable Management Tone

Freshworks Incorporated (NASDAQ:FRSH) is one of the 10 beaten-down technology stocks that could bounce back in 2026.

On February 11, Canaccord Genuity reduced the firm’s price target on Freshworks Incorporated (NASDAQ:FRSH) from $19 to $14. The firm maintained its Buy rating on the shares, offering almost 76% upside potential despite the target revision.

Canaccord Genuity noted that the company delivered fourth-quarter results above expectations for both revenue and earnings, while its calendar 2026 revenue outlook came in slightly ahead of consensus. However, the firm highlighted that the recent slowdown in growth remains a concern, adding that the trends appear increasingly misaligned with management’s optimistic tone, which has led to uncertainty among investors.

On February 11, Piper Sandler analyst Billy Fitzsimmons cut the price target of Freshworks Incorporated (NASDAQ:FRSH) to $10 from $12. The analyst maintained his Neutral rating on the stock following its quarterly earnings report. Despite the revision, the stock still yields an upside potential of almost 51% at the current level.

Fitzsimmons states that FY26 projections presented a mixed outlook. Revenue and billings projections are expected to surpass consensus estimates, while operating margin and EPS guidance came in below expectations.

Freshworks Incorporated (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 potential of FRSH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 17 Biotechnology Stocks with More Than 50% Upside and 12 Oversold Financial Stocks to Invest in According to Hedge Funds.