TD Cowen analyst Andrew Sherman reiterated a Buy rating on JFrog (FROG – Research Report) yesterday and set a price target of $47.00.
Andrew Sherman has given his Buy rating due to a combination of factors including JFrog’s impressive growth metrics and attractive valuation. The company has demonstrated strong performance in its Cloud segment, with a projected growth of 35% and a history of surpassing market expectations. Additionally, the introduction and adoption of Advanced Security is seen as a significant catalyst that could transform JFrog into a multi-product company, potentially leading to further expansion in market valuation.
Furthermore, despite the stock’s recent fluctuations, it has shown resilience with a 25% increase from its recent lows, and it is trading at a reasonable valuation of approximately 6x EV/CY26E Sales. Sherman’s confidence is also supported by JFrog’s strategic management practices, which include more conservative revenue guidance that allows for potential upside. Overall, the combination of these growth prospects and valuation metrics underpins the Buy rating with a price target of $47.
According to TipRanks, Sherman is an analyst with an average return of -4.7% and a 34.09% success rate. Sherman covers the Technology sector, focusing on stocks such as Procore Technologies, Elastic, and PagerDuty.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $40.00 price target.