JFrog's (FROG) Q1 cloud revenue beat was above even the high end of investor expectations, demonstrating strong usage trends and meaningful artificial intelligence pull-through, UBS Securities said in a note Friday.

Management has noted that a large AI-native customer from Q1 2025 renewed in Q1 this year while another pending "high-profile" AI-native win is believed to come with Q2 earnings and be a key upside catalyst for the stock, according to the note.

The company is benefiting from multiple AI tailwinds, the brokerage said, adding it sees material room for further upward estimate revisions.

UBS raised its price target on JFrog to $80 from $60, and maintained its buy rating.

Shares of JFrog were down 3.5% in Tuesday trading.

Price: 66.57, Change: -2.45, Percent Change: -3.54