Analyst Andrew Sherman from TD Cowen reiterated a Buy rating on JFrog and increased the price target to $55.00 from $50.00.
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Andrew Sherman has given his Buy rating due to a combination of factors that highlight JFrog’s strong performance and growth potential. The company has demonstrated impressive cloud growth, with a 45% increase that surpasses market expectations. This growth is driven by the adoption of security solutions and the conversion of customers into larger contracts, which indicates a strong demand for JFrog’s offerings.
Furthermore, JFrog has consistently exceeded its guidance for four consecutive quarters, showcasing its ability to deliver robust financial results. The company’s revenue and cloud revenue have both surpassed forecasts, and its operating margin has outperformed market expectations. Additionally, JFrog’s management has raised its revenue and cloud growth guidance, reflecting confidence in future performance. These factors, combined with attractive valuations, make JFrog a compelling investment opportunity, leading to the Buy rating and an increased price target of $55.
According to TipRanks, Sherman is a 4-star analyst with an average return of 10.9% and a 63.49% success rate. Sherman covers the Technology sector, focusing on stocks such as JFrog, PagerDuty, and Dynatrace.
In another report released on August 4, D.A. Davidson also reiterated a Buy rating on the stock with a $50.00 price target.