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Investing.com - Canaccord Genuity raised its price target on JFrog (NASDAQ:FROG) to $55.00 from $52.00 on Thursday, while maintaining a Buy rating on the software company’s shares. The company has demonstrated strong momentum, with shares surging nearly 69% year-to-date and maintaining a robust market capitalization of $5.8 billion.
The research firm cited JFrog’s "durable growth story with steadily expanding margins" expected over the next few years as the primary reason for the increased valuation. According to InvestingPro data, the company’s revenue grew by 22% in the last twelve months, with 8 analysts recently revising earnings estimates upward.
Canaccord described JFrog’s fiscal year 2027 revenue target of $775-$825 million as "aspirational, but still achievable" and noted this outlook is "far from priced in at these levels." The company maintains strong financial health with a current ratio of 2.13 and more cash than debt on its balance sheet. Get deeper insights into JFrog’s valuation metrics and 12 additional ProTips with InvestingPro.
The new $55 price target reflects approximately 10 times Canaccord’s calendar year 2026 sales estimate, up from the previous multiple of 8 times sales used in their earlier valuation model.
JFrog, which provides software release automation solutions, has seen its stock valuation adjusted upward as Canaccord expressed continued confidence in the company’s long-term growth trajectory.
In other recent news, JFrog Ltd. announced several significant product launches aimed at enhancing software development and security. The company introduced AI-powered security remediation features that integrate with GitHub Copilot to automate the identification and fixing of software vulnerabilities. Additionally, JFrog unveiled AppTrust, a solution to automate compliance across the software supply chain, providing evidence-based insights for security and compliance. To support AppTrust, JFrog partnered with technology firms like GitHub and ServiceNow to create an Evidence Ecosystem, offering a centralized audit trail system for software development lifecycles. Furthermore, JFrog launched JFrog Fly, an agentic repository designed to streamline software delivery, particularly for development teams using AI tools. These developments have contributed to DA Davidson raising its price target for JFrog to $60, maintaining a Buy rating due to increased confidence in the company’s growth outlook.
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