JFrog should be bought on any weakness after Q1 report, says BofA

BofA reiterates a Buy rating and $54 price target on JFrog shares following the company’s Q1 report and recommends investors buy on any weakness. Cloud revenue growth of 47% year-over-year “likely didn’t meet elevated expectations into the print,” which the firm thought could happen. However, there are some Cloud revenue mechanics for JFrog that need to be fleshed out and the firm does not believe decelerating Cloud growth to 47% is “any indication of a negative inflection in the business,” while arguing that its enterprise DevSecOps platform “continues to be industry leading” and that “the good 1Q24 results support the thesis.”