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Shares of JFrog climbed over 3% on Thursday after William Blair upgraded the company from Market Perform to Outperform, as the brokerage sees JFrog entering its next growth phase.
The U.S.-Israeli technology provider has soared nearly 27% YTD.
Brokerage believes the company’s broadening DevOps-focused security capabilities and introduction of new add-on SKUs like Advanced Security and Curation should allow it to grow within existing customer accounts and clinch new logos.
The widespread adoption of generative AI should act as a tailwind for the company, with the advent of generative AI leading to more need and consumption for JFrog’s products.
William Blair noted that JFrog has been free cash flow positive for more than eight years and is progressing towards its long-term goal of 22% non-GAAP operating margin.
According to the brokerage, the company’s dominance in the binary repository space imparts it with a “differentiated and strategic control point within the software supply chain.”
