Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - CFRA has raised its price target on JFrog (NASDAQ:FROG) to $51.00 from $47.00 while maintaining a Buy rating on the software company’s shares. The stock, currently trading near its 52-week high of $46.64, has delivered an impressive 66.87% return over the past year.
The research firm cited JFrog’s consecutive quarters of accelerating top-line growth as evidence of the attractiveness of its end-to-end platform to customers. With revenue growing at 21.97% and maintaining a robust 75.53% gross margin, InvestingPro data shows six analysts have recently revised their earnings estimates upward. CFRA kept its 2025 earnings per share forecast at $0.71 while slightly increasing its 2026 EPS projection to $0.81 from $0.80.
JFrog is successfully expanding in the upmarket segment, adding large customers with annual recurring revenue (ARR) above $100,000 and $1 million at a solid pace, according to the analyst report. Existing clients are exceeding their minimum contract commitments, reflecting demand strength driven by artificial intelligence adoption. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 2.13 and more cash than debt on its balance sheet.
CFRA sees potential for JFrog to exceed its full-year outlook as guidance is derisked from overage expectations, alongside broader enterprise enthusiasm for AI implementation. The firm noted this creates opportunity for upside to current forecasts.
The company’s margins are expanding steadily, with operating margin increasing 200 basis points year-over-year in the second quarter, supporting CFRA’s valuation based on a forward EV/S multiple of 9x its 2026 sales projection of $597 million.
In other recent news, JFrog’s financial performance has drawn positive attention from several analyst firms. Following its quarterly earnings report, which exceeded expectations, DA Davidson raised its price target for JFrog to $55, citing cloud usage and security demand as key growth drivers. Cantor Fitzgerald also increased its price target to $55 after describing JFrog’s second-quarter 2025 results as a "strong" and "impressive beat" compared to analyst expectations. Similarly, Truist Securities raised its target to $55, highlighting another quarter of strong consumption for the company. Stifel adjusted its price target to $53, noting the company’s performance exceeded expectations across all metrics, driven by core cloud growth and increased security adoption. TD Cowen also raised its price target to $55, acknowledging JFrog’s strong second-quarter performance and improved guidance, with cloud growth significantly above expectations. These developments underscore the positive sentiment among analysts regarding JFrog’s recent financial achievements.
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