JFrog's (FROG) broad portfolio and AI traction, along with solid product execution and expansion, has positioned it to take an early lead in the AI-related workloads space, Oppenheimer analysts said in a Friday note.

The company is expected to continue progressing enterprise sales motion, leverage new bundling and cross-sell opportunities, and produce strong product execution, analysts said.

"We took too long to fully appreciate JFrog's Artifactory differentiation and ability to expand this sticky customer base

into emerging opportunities securing/registering/governing AI/ML model," analysts said.

Oppenheimer said the company's "strong" Q3 results were primarily driven by existing security workloads, but noted management commentary regarding encouraging AI traction.

Analysts said that following Jfrog's Q3 results, they have more confidence in management's ability to execute and sustain the momentum as opportunities emerge in security, AI, and compliance.

Oppenheimer upgrades the stock's rating to outperform from perform and has a $75 price target.

Price: 58.36, Change: +11.10, Percent Change: +23.48