JFrog stock price target raised to $50 at DA Davidson

Published 14/02/2025, 18:16
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On Friday, DA Davidson analysts increased their price target on JFrog (NASDAQ:FROG) shares to $50.00, up from the previous $45.00, while maintaining a Buy rating on the stock. The firm's analysts highlighted JFrog's impressive performance at the end of 2024, citing cloud migrations, enterprise go-to-market (GTM) investments, and security adoption as key growth drivers. According to InvestingPro data, the stock has shown strong momentum with a 45.6% return over the past six months, though the RSI suggests it's currently in overbought territory.

The company's guidance, although described as conservative, exceeded analysts' expectations. DA Davidson's analysts expressed continued confidence in JFrog, selecting it as a top pick for the year. The raised price target reflects the firm's optimism about JFrog's future performance. InvestingPro analysis shows the company maintaining impressive gross profit margins of 77.06% and achieving revenue growth of 22.47% in the last twelve months. Get access to 12 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.

JFrog's strong results were attributed to a strategic focus on expanding its cloud-based offerings and investing in enterprise GTM initiatives. These efforts are seen as significant contributors to the company's revenue growth and market position. Additionally, the adoption of JFrog's security solutions has been identified as a positive influence on the company's growth trajectory.

The analysts' bullish stance on JFrog is further supported by their belief in the company's potential to outperform in the current year. The increase in the price target to $50 indicates DA Davidson's belief that JFrog's stock has a higher growth potential than previously estimated.

In summary, DA Davidson's analysts have reaffirmed their Buy rating on JFrog stock and raised their price target based on the company's strong performance and positive outlook. They remain bullish on JFrog, considering it a top pick for investors in 2025.

In other recent news, JFrog demonstrated robust financial growth, with Q4 results surpassing analyst expectations. The company reported adjusted earnings per share of $0.19, and revenue came in at $116.1 million, marking a 19% year-over-year increase. A key driver of this growth was JFrog's cloud revenue, which surged 37% year-over-year to $49.4 million. These recent developments have led to revisions in analyst ratings, with both Needham and Cantor Fitzgerald raising their price targets to $46. Needham reiterated a Buy rating, while Cantor Fitzgerald maintained an Overweight rating. Despite initial concerns about JFrog's full-year guidance, Needham highlighted a 22% year-over-year increase in Billings and a 55% rise in Remaining Performance Obligations, indicating strong performance. Looking ahead, JFrog expects Q1 revenue between $116-118 million and projects full-year 2025 revenue of $499-503 million.

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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