JFrog stock price target raised to $53 by Stifel on cloud growth momentum

Published 08/08/2025, 15:40
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Investing.com - Stifel raised its price target on JFrog (NASDAQ:FROG) to $53.00 from $45.00 on Friday, while maintaining a Buy rating on the software company’s shares. Currently trading at $42.35, the company has demonstrated strong momentum with a 31.89% year-to-date return. According to InvestingPro analysis, JFrog’s current market capitalization stands at approximately $5 billion.

The price target increase follows JFrog’s second-quarter results, which exceeded expectations across all metrics. The company’s performance was driven by accelerating core Cloud growth stemming from above-commitment consumption, increasing security adoption, and conversion of customers into larger annual contracts. InvestingPro data reveals impressive gross profit margins of 76.06% and strong revenue growth of 21.66% over the last twelve months.

JFrog management raised its fiscal year 2025 cloud growth expectations by approximately 300 basis points. The company also highlighted momentum in hybrid deals, noting that customers are reconsidering the unpredictable costs of running AI workloads in the cloud.

A large generative AI customer that JFrog acquired last quarter has already doubled their self-managed annual contract. This development, combined with strong multi-year commitment trends, drove the company’s remaining performance obligations (RPO) up 75% year-over-year, representing a $50 million increase quarter-over-quarter.

Despite the strong quarterly performance, JFrog maintained its prudent guidance approach, continuing to exclude overconsumption trends and de-risking its second-half large deal pipeline. Stifel believes JFrog remains well-positioned to sustain high-teens revenue growth in the coming years. InvestingPro analysis indicates the company has achieved a "GOOD" overall financial health score, with analysts expecting profitability this year. For detailed insights and additional ProTips, including JFrog’s comprehensive Fair Value analysis, explore the full Pro Research Report available on InvestingPro.

In other recent news, JFrog has reported impressive second-quarter results for 2025, beating analysts’ forecasts. The company posted an earnings per share (EPS) of $0.18, surpassing the expected $0.16, and reported revenues of $127.2 million, exceeding the anticipated $122.79 million. This strong performance has been accompanied by significant growth in JFrog’s cloud segment, which saw a 45% increase, well above the consensus expectation of 36%.

Following these results, several analyst firms have adjusted their price targets for JFrog. TD Cowen raised its price target to $55 from $50, maintaining a Buy rating, while KeyBanc increased its target to $52 from $46, retaining an Overweight rating. Piper Sandler also raised its price target to $48 from $40, citing the company’s solid performance and notable cloud growth, although it maintained a Neutral rating. These developments highlight the positive momentum JFrog is experiencing in its cloud business and overall financial performance.

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