DA Davidson raises JFrog stock price target to $55 on cloud growth

Published 08/08/2025, 16:38
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Investing.com - DA Davidson raised its price target on JFrog (NASDAQ:FROG) to $55.00 from $50.00 on Friday, while maintaining a Buy rating on the software company’s shares. The new target represents potential upside from the current price of $41.22, with JFrog’s market capitalization standing at $4.7 billion.

The price target increase follows JFrog’s quarterly earnings report, which showed the company outperformed expectations. Cloud usage and security demand were identified as key drivers behind the company’s growth performance, reflected in impressive revenue growth of 21.7% and strong gross profit margins of 76%. According to InvestingPro, the company maintains a GOOD overall financial health score.

DA Davidson noted that JFrog is experiencing record growth in its backlog, suggesting strong future revenue potential. Despite this positive indicator, the firm observed that JFrog’s guidance remains conservative.

The research firm pointed out that JFrog’s current guidance does not include the largest deals in the company’s pipeline, indicating potential upside to forecasts if these deals materialize.

DA Davidson reaffirmed JFrog as a top pick for the year, citing the company’s continued strong performance in cloud services and security solutions as fundamental reasons for its positive outlook. The company’s strong momentum is evident in its year-to-date return of 31.9%.

In other recent news, JFrog has reported impressive second-quarter financial results, prompting several analysts to adjust their price targets for the company. Cantor Fitzgerald raised its price target to $55 from $46, citing strong performance that surpassed analyst expectations. Similarly, Truist Securities increased its target to $55 from $45, highlighting robust consumption as the company reached the midpoint of its fiscal year 2025. Stifel also adjusted its target to $53 from $45, noting the company’s accelerating cloud growth and increased security adoption. TD Cowen followed suit, raising its target to $55 from $50, as JFrog’s cloud growth hit 45%, exceeding market expectations. KeyBanc increased its target to $52 from $46, emphasizing the notable 45% year-over-year growth in cloud revenue. These developments reflect the positive sentiment among analysts regarding JFrog’s recent performance and growth trajectory.

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