JFrog stock rises following Barclays price hike note

Investing.com -- JFrog Ltd. (NASDAQ:FROG) shares climbed 6.5% today after Barclays (LON:BARC ) analyst Ryan MacWilliams noted the company's recent price increases on its self-hosted Pro X and Enterprise X tiers.

The adjustments, which took effect on January 1, saw hikes of approximately 15% for Pro X and about 6% for Enterprise X, according to the analyst.

While Barclays is awaiting further details from JFrog's management to formally adjust their financial estimates, MacWilliams provided an initial assessment that the price changes could "conservatively add" at least $10 million to JFrog's self-hosted revenues in the fiscal year 2025.

Consequently, Barclays maintains an overweight rating on the stock with a price target (PT) of $38.

Barclays analyst Ryan MacWilliams said, "It is unclear to us if the Enterprise+ self-hosted plan received a price increase as well, though FROG’s 2023 price increase was across all subscription types of self-hosted solutions."

This statement suggests that while the exact impact of the price adjustments on all tiers is yet to be determined, there is an expectation of widespread revenue growth from the company's self-hosted offerings.

JFrog's strategic decision to raise prices reflects a potential boost in revenue for the company, which investors have responded to positively in today's trading session.

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Source: Investing.com