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Investing.com - TD Cowen raised its price target on JFrog (NASDAQ:FROG) to $55 from $50 on Friday, while maintaining a Buy rating on the software company’s shares. The new target aligns with broader market sentiment, as InvestingPro data shows JFrog has delivered an impressive 57.17% return over the past year, with analyst targets ranging from $42 to $55.
The price target increase follows JFrog’s strong second-quarter performance and improved guidance, with cloud growth reaching 45%, significantly above Street expectations of 36% and accelerating from 42% in the first quarter. This growth complements the company’s robust gross profit margin of 76.06% and overall revenue growth of 21.66%, according to InvestingPro data.
TD Cowen noted the cloud growth was driven by security offerings and the conversion of customers who were consuming above their commitments into larger deals.
JFrog raised its fiscal year 2025 revenue growth guidance from 18% to 19%, while its cloud guidance was increased by 300 basis points to 34-36%, which TD Cowen believes remains conservative.
The firm highlighted JFrog’s current run-rate public organization (cRPO) growth of 43%, which accelerated from the previous quarter, and noted the company’s strong security traction with more expected in the second half of the year.
In other recent news, JFrog Ltd. reported impressive second-quarter earnings, surpassing analysts’ expectations. The company achieved an earnings per share of $0.18, outpacing the forecasted $0.16, and reported revenue of $127.2 million, exceeding the anticipated $122.79 million. This strong financial performance was further highlighted by a 45% year-over-year increase in Cloud revenue, significantly beating consensus expectations of 36%. Following these results, KeyBanc adjusted its price target for JFrog to $52 from $46, maintaining an Overweight rating. Piper Sandler also raised its price target to $48 from $40, citing the company’s solid second-quarter results and accelerating cloud growth. These developments reflect JFrog’s continued momentum in the market, with analysts acknowledging the company’s strong performance and growth potential.
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