Scotiabank starts JFrog at Sector Perform with growth priced in

Scotiabank initiated coverage of JFrog with a Sector Perform rating and $29 price target. The analyst believes the share price already reflects the company’s growth potential. JFrog is expanding into security, which is the correct strategic move and will likely be “table stakes over the medium term” as customers look to increasingly consolidate their DevSecOps tooling stack, the analyst tells investors in a research note. The firm believes JFrog is “priced appropriately” and would get more positive on the stock if the company’s “growth durability” proves better than expected or the valuation falls.