JFrog: Market Overreacts to Claude Code Security Launch, Creating a Buy Opportunity in Core Binary Management Business

Morgan Stanley analyst Sanjit Singh has maintained their bullish stance on FROG stock, giving a Buy rating yesterday.

Sanjit Singh has given his Buy rating due to a combination of factors related to JFrog’s core business and the recent share-price reaction. He argues that the stock’s more than 20% drop following the launch of Claude Code Security was an excessive market response, because JFrog’s primary focus is on storing, managing, and protecting binaries rather than performing code-level security scanning.

Singh notes that JFrog’s direct exposure to Static Application Security Testing, the segment most impacted by Claude Code Security, is only a very small portion of its overall business. In his view, the surge in AI-generated code should actually increase demand for JFrog’s binary management and security solutions, positioning the company to benefit from these trends and making the recent pullback an attractive buying opportunity.

In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $80.00 price target.