Strategic Positioning and Growth Potential: JFrog’s AI/ML Aspirations and Security Focus Drive Buy Rating

Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on FROG stock, giving a Buy rating on June 4.

Shrenik Kothari has given his Buy rating due to a combination of factors that highlight JFrog’s strategic positioning and growth potential. The company’s pivot towards enterprise-focused go-to-market strategies is showing positive momentum, particularly with their AI/ML aspirations and partnerships, such as the one with Hugging Face. This partnership, along with their vision for ‘ML-as-a-service,’ is beginning to gain traction, even though it is not yet reflected in the FY25 guidance.
Additionally, JFrog’s emphasis on security, particularly in securing binaries rather than just source code, positions them well as organizations shift towards more comprehensive security strategies. The company’s role as a system of record for trusted binaries and their integration of security throughout the artifact lifecycle further strengthens their value proposition. Furthermore, the strategic traction with major AI players and the development of a usage model around ‘ML credits’ indicate JFrog’s potential in the AI and ML space, supporting the Buy rating given by Kothari.