JFrog selloff ‘materially overdone,’ says Morgan Stanley

Morgan Stanley notes that JFrog (FROG) shares fell over 23% on Friday following the announcement of Claude Code Security, but it sees the selloff as “materially overdone” given that JFrog’s business is tied to storing, managing and securing binaries – not code. The firm, which estimates JFrog exposure to Static Application Security Testing is in the low-single digits, would be buyers of the significant pullback as it sees the vast majority of JFrog’s business benefiting from the rapid growth in AI-generated code, says the analyst, who has an Overweight rating and $70 price target on JFrog shares.