Koji Ikeda, an analyst from Bank of America Securities, maintained the Buy rating on JFrog (FROG – Research Report). The associated price target is $42.00.
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Koji Ikeda has given his Buy rating due to a combination of factors that indicate JFrog’s potential for growth and financial stability. The company is recognized as mission-critical in the enterprise supply chain space, which is expected to drive medium-term product adoption. Additionally, JFrog’s management is expected to maintain a conservative guidance strategy for 2025, which could lead to ongoing positive surprises in earnings results.
Another factor supporting the Buy rating is the anticipated strong performance in JFrog’s cloud revenue, with projected growth rates exceeding 30% year-over-year. This is complemented by a recent 15% price increase in its Pro X tier, which is likely to contribute significantly to margin expansion and exceed current Street revenue estimates. Furthermore, Ikeda sees potential for upward revisions in JFrog’s free cash flow margins, driven by management’s focus on profitable growth and contract value increases from SaaS transitions, indicating a conservative approach to its financial targets.
Based on the recent corporate insider activity of 83 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.