JFrog stock price target raised to $46 at Cantor Fitzgerald

Published 14/02/2025, 14:08
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On Friday, Cantor Fitzgerald's analysts demonstrated confidence in JFrog (NASDAQ:FROG) by increasing the company's price target from $38.00 to $46.00. The firm maintained its Overweight rating on the stock, signaling a positive outlook on JFrog's financial performance. According to InvestingPro data, JFrog's stock has already gained 28.22% year-to-date and shows impressive financial health with a GOOD overall rating.

The decision to raise the price target follows JFrog's impressive fourth quarter of 2024 results, which surpassed the FactSet consensus in multiple key areas. The company reported a significant beat on revenue, earnings per share, and free cash flow. These strong financials are a testament to JFrog's solid execution during the quarter, with notable gains driven by its cloud services, Enterprise+ offerings, and an increase in deal sizes. The company maintains robust gross profit margins of 77.98% and has achieved substantial revenue growth of 24.45% over the last twelve months.

Looking ahead, JFrog has provided financial guidance for the fiscal year 2025, forecasting a 17% growth in both top-line revenue and operating income at the midpoint. These projections are positioned above the consensus expectations, suggesting a robust financial trajectory for the company.

The management team at JFrog has also been transparent about their more cautious stance on future guidance. They cite the reason for this approach as the increased volatility in large deal closures, which can impact predictability. Despite this caution, the positive fourth-quarter results and optimistic projections for the next fiscal year have contributed to Cantor Fitzgerald's decision to raise the price target on JFrog stock.

In other recent news, JFrog Ltd. reported impressive Q4 results, with both earnings and revenue surpassing analyst expectations. The company recorded an adjusted earnings per share of $0.19, exceeding the consensus estimate of $0.14. Revenue was reported at $116.1 million, beating Wall Street's forecast of $114.25 million and demonstrating a 19% YoY increase. A significant portion of this revenue, $49.4 million, was attributed to JFrog's cloud revenue, which surged 37% YoY, reflecting its growing importance in the company's revenue structure.

In addition to these financial highlights, JFrog also reported strong customer growth. The number of clients generating over $1 million in annual recurring revenue rose to 52, marking a 41% YoY increase. These recent developments paint a positive picture of JFrog's performance and growth.

Furthermore, the company provided an optimistic outlook for Q1 and full-year 2025. For Q1, JFrog expects revenue between $116-118 million, aligning with analyst estimates. For the full-year 2025, the company projects revenue of $499-503 million, slightly above the consensus of $500 million. This guidance suggests a continued positive trajectory for the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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