JFrog Shares Rise After Barclays’ Price Upgrade Note

JFrog Ltd. (NASDAQ:FROG) shares rose 6.5% today after Barclays analyst Ryan MacWilliams drew attention to recent price increases in the company's self-hosted Pro X and Enterprise X tiers.

According to the analyst, the regulations that came into effect on January 1st include approximately a 15% increase for Pro X and about a 6% increase for Enterprise X. While Barclays awaits more details from JFrog management to formally update its financial forecasts, MacWilliams noted in his initial assessment that the price changes could conservatively add at least $10 million to JFrog's revenue from its self-hosted solutions in the fiscal year 2025.

As a result, Barclays maintains an "overweight" rating on the stock with a target price of $38. Barclays analyst Ryan MacWilliams stated, "It is unclear to us whether the Enterprise+ self-hosted plan also received a price increase, but FROG's 2023 price increase encompassed all subscription types for self-hosted solutions."

This remark suggests that there is a widespread expectation of increased revenue from the company’s self-hosted solutions, despite the full impact of the price adjustments across all tiers not being determined yet. JFrog's strategic decision to raise prices reflects a potential increase in revenue for the company, and investors reacted positively to this today during the trading session.