JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2

Investing.com - JFrog (NASDAQ:FROG) maintained its Overweight rating and $55.00 price target from Cantor Fitzgerald following the company’s second-quarter 2025 performance. According to InvestingPro data, the stock is currently trading near its Fair Value, with 8 analysts recently revising their earnings estimates upward.

The software company delivered what Cantor Fitzgerald described as an "impressive" beat across revenue, billings, and operating margin in Q2. The strong performance was attributed to increased developer activity, expanding annual commitments, and large security wins.

JFrog’s SaaS revenue grew 45% year-over-year to $57.1 million, accelerating from 42% growth in the second quarter of 2024. Cloud now represents 45% of the company’s total revenue, while Enterprise+ subscriptions and customers with over $1 million in annual recurring revenue experienced healthy expansion.

The company’s remaining performance obligations (RPO) rose 75% year-over-year, driven by multi-year security and platform commitments. Net dollar retention (NDR) improved to 118% during the quarter.

Cantor Fitzgerald highlighted several areas to monitor, including gross margin pressures from higher cloud mix, the ramp of JFrog’s newly launched MCP Server for AI agents, and the sustainability of strong expansion trends.

In other recent news, JFrog has seen a series of positive developments following its latest financial results. The company’s second-quarter performance has been described as strong, with several analysts noting that it exceeded expectations. DA Davidson, Cantor Fitzgerald, and Truist Securities all raised their price targets for JFrog to $55, citing factors such as cloud growth and strong consumption as key drivers. Stifel also increased its price target to $53, highlighting the company’s momentum in cloud growth and security adoption.

CFRA raised its price target to $51, emphasizing JFrog’s accelerating top-line growth and the attractiveness of its platform. The firm maintained its earnings per share forecast for 2025 at $0.71, with a slight increase for 2026. Analysts from these firms have maintained a Buy or Overweight rating on JFrog’s shares, indicating continued confidence in the company’s growth prospects. These developments reflect a broad consensus among analysts on JFrog’s positive trajectory.

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