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New jobs (NASDAQ: FRSH) shares rose 1% in early trading Tuesday as investment firm Cantor Fitzgerald started coverage on the business software company.
Researcher Brett Knoblauch founded Freshworks (FRSH) with obesity and price per share of $18, recognizing that it is a “one-stop shop” for customer support, IT service management and sales and marketing tools.
“Our discussions with customers, partners, and suppliers reinforce our view that FRSH has a high-quality product and has the opportunity to drive long-term growth,” Knoblauch wrote to clients.
“While we expect the uncertain environment to reduce growth risks in the short term, FRSH has $1.1B in cash on its balance sheet and no debt, which we believe gives FRSH sufficient flexibility to improve its product sales, go-to-market operations, or pursue strategic initiatives. M&A,” added Knoblauch.
In addition to the paper’s supporting, positive market changes, Knoblauch noted that Freshworks (FRSH) is close to generating free cash flow, both with significant growth opportunities ahead of it, and trading at a fair value. partners, such as Hubspot (HUBS).
“Finally, we believe that FRSH is at the beginning of its growth story, which we believe paves the way for profitability. [free cash flow] over time, which makes shares attractive right now,” Knoblauch said.
Earlier this month, investment firm Canaccord Genuity downgraded Freshworks ( FRSH ), citing concerns about its valuation and weak business metrics.
