Top AI Stocks with Strong Buy Ratings
In a recent research report, Barclays analyst Ryan MacWilliams expressed confidence in the DevOps market, viewing it as a lucrative investment opportunity driven by AI-related demand. According to MacWilliams, the DevOps sector is expected to see significant growth, with IDC projecting a compound annual growth rate (CAGR) of approximately 36% from 2023 to 2027. He highlighted two AI-focused companies with a Strong Buy consensus rating: JFrog (FROG) and monday.com (MNDY).
JFrog (FROG):
JFrog, a DevOps software company, offers tools for seamless and secure software updates. Its platform is fully automated, scalable, and compatible with various cloud and on-prem solutions. JFrog recently acquired Qwak AI for $230 million, aiming to enhance its machine learning capabilities and streamline development models. The company’s financial performance remains robust, with a 1Q24 revenue of $100.3 million and a non-GAAP EPS of 16 cents per share. MacWilliams initiated coverage with an Overweight rating and a $50 price target, indicating a potential 33% one-year gain. The stock holds a Strong Buy consensus rating with a projected 23.5% appreciation.
monday.com (MNDY):
monday.com specializes in cloud-based work management software. Its platform is widely adopted by enterprise clients, including Coca Cola and Uber, boasting over 225,000 customers and significant annual recurring revenue. MacWilliams praised monday.com’s growth potential and product upsell opportunities, particularly in CRM and DevOps. He initiated coverage with an Overweight rating and a $275 price target, suggesting a 14% one-year upside. The stock also has a Strong Buy consensus rating, with a projected 7% upside potential.
Both companies exemplify the promising investment landscape in the AI-driven DevOps market.