Andrew Sherman, an analyst from TD Cowen, reiterated the Buy rating on JFrog (FROG – Research Report). The associated price target was raised to $50.00.
Andrew Sherman has given his Buy rating due to a combination of factors that highlight JFrog’s strong performance and potential for growth. The company’s cloud revenue growth of 42% significantly surpasses market expectations, driven by increased consumption beyond initial commitments. This robust performance is complemented by a strategic win with a major AI company, showcasing JFrog’s scalability and potential for further expansion with additional products.
Furthermore, JFrog’s security pipelines are gaining momentum, suggesting the company is consolidating its position in the market and potentially increasing its product offerings. The attractive valuation metrics, such as trading at approximately 6x EV/CY26E Sales and 25x EV/FCF, make JFrog a compelling investment for small-cap growth portfolios. The company’s consistent performance, marked by consecutive quarters of exceeding guidance, reinforces the confidence in its future prospects, leading to an increased price target of $50.
In another report released on May 6, D.A. Davidson also reiterated a Buy rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FROG in relation to earlier this year.