JFrog stock price target raised to $58 from $55 at TD Cowen on cloud growth

Investing.com - TD Cowen raised its price target on JFrog (NASDAQ:FROG), a $5.4 billion market cap software company with a "GOOD" overall financial health score according to InvestingPro, to $58.00 from $55.00 on Friday, while maintaining a Buy rating on the shares.

The firm expects JFrog to show continued strength in its cloud business, projecting cloud growth of 36% and total growth of 18%. This aligns with the company’s impressive 22% revenue growth over the last twelve months, as reported by InvestingPro. TD Cowen anticipates JFrog will deliver another quarter of results that exceed expectations.

Checks from JFrog’s SwampUp event in September and a recent partner check were described as "bullish," with the firm noting artificial intelligence tailwinds, customer up-tiering, and GitHub benefits as positive factors.

JFrog shares have significantly outperformed the market this year, rising 53% year-to-date compared to an 8% decline in the EMCLOUD index. The stock has gained 20% since the company’s second-quarter earnings report.

TD Cowen views JFrog’s valuation as attractive at approximately 7.5x EV/CY27E Sales and 25x EV/CY27E FCF, supporting its decision to raise the price target to $58, which represents about 30x EV/CY27E FCF. According to InvestingPro analysis, the stock is currently fairly valued, with analyst targets ranging from $48 to $65. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into JFrog’s valuation and growth prospects.

In other recent news, JFrog has seen several developments that could interest investors. Cantor Fitzgerald raised its price target for JFrog to $60 from $55, maintaining an Overweight rating, highlighting the company’s positioning as a secure and automated trust platform amid the adoption of AI. Similarly, KeyBanc increased its price target to $57 from $52, also keeping an Overweight rating, noting JFrog’s licensing model and consumption-based pricing as strengths. Stifel reiterated its Buy rating with a $53 price target, pointing to JFrog’s integration of generative AI features like JFrog Fly and Agentic Remediation. Canaccord Genuity also raised its price target to $55, citing JFrog’s durable growth outlook and expanding margins. Additionally, JFrog announced that Sigal Zarmi, former CIO of Morgan Stanley, will join its Board of Directors starting November 1, 2025. These updates come after JFrog’s SwampUP 2025 event, where it showcased its advancements in software and model delivery.

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