JFrog added as bullish fresh pick at Baird

JFrog added as bullish fresh pick at Baird

JFrog Receives Upgraded Price Target as Analysts Highlight AI-Driven Growth Potential

On February 8, 2026, Robert W. Baird analyst Shrenik Kothari raised JFrog Ltd.’s (NASDAQ: FROG) price target to $78 from $70, reaffirming a “Buy” rating. The upgrade follows the company’s strong execution and conservative guidance, with Kothari emphasizing underappreciated growth drivers such as usage overages, cloud migrations, and emerging AI demand. JFrog’s cloud revenue grew 42% year-over-year in Q4 2024, yet the stock’s post-earnings rally of 2.51% remained muted, suggesting market expectations were already priced in.

The analyst highlighted JFrog’s role in managing software supply chains, where AI adoption generates increased binary files, directly boosting usage-based revenue. Bank of America Securities also maintained a “Buy” rating on February 6, setting a $74 price target and noting JFrog’s potential to lead enterprise software rebounds post-SaaSpocalypse. The firm cited JFrog’s diverse product suite—including Artifactory, Xray, and AI-focused tools like JFrog ML—as key differentiators in sectors such as financial services, healthcare, and technology.

JFrog’s financials reflect robust demand, with remaining performance obligations (RPO) rising 40% year-over-year to $566 million as of December 2024. A net dollar retention rate of 119% underscores customer expansion, though a 97% gross retention rate indicates intentional churn of lower-value accounts. Analysts argue management’s conservative fiscal 2026 guidance—17.5% revenue growth— understates potential upside from AI-driven usage overages and large-scale cloud transitions.

However, risks persist. Macro-driven cuts in cloud spending or slower-than-expected AI adoption could pressure growth. Additionally, a valuation gap exists between Baird’s $78 target and current multiples, which may close only if the market recognizes AI-driven usage acceleration.

For now, JFrog’s stock remains a test of its ability to consistently exceed guidance, with Q1 2026 revenue projected between $146 million and $148 million. Investors will closely watch cloud revenue trends and enterprise adoption of AI tools to validate the bullish thesis.

(https://finance.yahoo.com/news/why-jfrog-ltd-frog-price-171109083.html): Yahoo Finance, TipRanks
(https://www.ainvest.com/news/baird-78-target-jfrog-ai-catalyst-mispricing-2602/): AInvest, Yahoo Finance