Continuing a decline that saw shares end Friday's session lower than the day before, Freshworks (FRSH 0.94%) stock is off to a bearish start this week. An analyst has taken a more pessimistic stance on the software stock, and investors have taken note.
As of 1:51 p.m. ET, shares of Freshworks are down 7.3%.
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Add this firm's position to the list of others souring on Freshworks stock
Downgrading Freshworks stock to hold from buy this morning, Jefferies slashed its price target to $8 from $20. According to Thefly.com, Jefferies based its revision on the belief that the company faces risks from competitors and from artificial intelligence.
NASDAQ: FRSH
Key Data Points
Based on Freshworks shares closing at $7.46 on Friday, the new price target implies upside of 7%.
The lower price target from Jefferies follows several other analysts who have also expressed a more bearish outlook on Freshworks stock. On Feb. 11, UBS reduced its price target to $11 from $17, and Baird dropped its price target to $10 from $16.
What are investors to do now?
Unsurprisingly, Freshworks stock is heading south amid numerous price target reductions. Current shareholders, however, shouldn't feel compelled to click the sell button. The company fared well in 2025, growing revenue 16% year-over-year and adjusted free cash flow 46% year-over-year.
Instead of rushing to exit their positions, investors should sit pat and wait to see how the company performs in 2026. If quarterly reports show declining financial results, it may be time for shareholders to reevaluate their positions in the tech stock.
