Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on FROG stock, giving a Buy rating on July 25.
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Shrenik Kothari has given his Buy rating due to a combination of factors that suggest a positive outlook for JFrog’s stock. The company is expected to benefit from strong demand in strategic and large enterprise deals, particularly in the areas of security, artifact expansion, and machine learning. These areas are seen as key growth drivers, and the feedback from partners supports the confidence in the company’s performance in the second half of the year.
Additionally, the conservative guidance provided by JFrog, which does not include potential benefits from AI monetization, sets a lower bar for performance, allowing for potential upside. The valuation of JFrog’s stock is considered reasonable, especially given the company’s solid Rule-of-40 profile and the ongoing ramp-up in its go-to-market strategies. Overall, these factors contribute to a favorable risk/reward setup for the stock in the upcoming quarters.
Kothari covers the Technology sector, focusing on stocks such as Cloudflare, Check Point, and CyberArk Software. According to TipRanks, Kothari has an average return of 26.8% and a 72.69% success rate on recommended stocks.
In another report released on July 25, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $46.00 price target.