5 Best Middle East and Africa Stocks to Buy According to Hedge Funds

4. JFrog Ltd. (NASDAQ:FROG)

Number of Hedge Fund Holders: 50

Stock Upside: 23.88%

JFrog Ltd. (NASDAQ:FROG) is one of the best Middle East and Africa stocks to buy according to hedge funds. On May 8, Stifel analyst Brad Reback raised his price target on JFrog Ltd. (NASDAQ:FROG) from $52 to $75, and maintained his Buy rating on the stock.

The upgrade reverses a cautious stance the analyst had taken on February 22 when he cut his target from $64 to $52. At the time, Reback argued that Claude Code Security, which Anthropic had just introduced, would weigh on JFrog’s growth prospects. Fast forward, the analyst now believes that JFrog’s place in the market is unassailable, an argument that Reback said is supported by the company’s blowout earnings in Q1 FY2026. He noted that, for the first time, JFrog’s cloud revenue exceeded half of total revenue during the first quarter. The revenue came in at $78.9 million, up 50% year over year, and represented 51% of total revenue, up from 43% the year before.

Total revenue for the quarter reached $154 million, a 26% year over year increase. This growth came on the back of growing enterprise demand for a platform that can manage not just software code but also artificial intelligence models and related components as companies push to deploy AI in real-world settings, noted management.

Given the performance, Reback expects JFrog’s stock to stabilize at the current levels. He pointed out that the nature of growth in JFrog’s core business continues to benefit from increased code generation powered by AI.

JFrog Ltd. (NASDAQ:FROG) is a software company with major operations and development activities in Israel. The company provides software supply chain platforms that help organizations manage, secure, distribute, and update software applications across cloud, hybrid, and on-premises environments.