Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on FROG stock, giving a Buy rating yesterday.
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Shrenik Kothari has given his Buy rating due to a combination of factors including JFrog’s robust performance in the fourth quarter of 2024. The company showed a significant year-over-year revenue growth of 19%, with cloud services contributing a notable 37% increase. This growth is supported by strong security traction, as security annual recurring revenue now represents 5% of the total ARR and 12% of the remaining performance obligations, highlighting JFrog’s strategic focus on security and its successful expansion in this area.
Additionally, the integration of MLOps following the Qwak acquisition is starting to show potential, setting JFrog apart as a unique platform that combines DevOps, DevSecOps, and MLOps. The deepening partnership with AWS and the move towards AI-driven workflows further bolster its position. Despite a conservative guidance for fiscal year 2025, the company’s ability to navigate a challenging macroeconomic environment and secure large multi-year commitments underlines its strong execution capabilities, contributing to the positive outlook and the Buy rating.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $47.00 price target.
Based on the recent corporate insider activity of 91 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.