Koji Ikeda, an analyst from Bank of America Securities, reiterated the Buy rating on Gitlab (GTLB – Research Report). The associated price target was lowered to $72.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Koji Ikeda has given his Buy rating due to a combination of factors that highlight GitLab’s potential for long-term growth in the DevSecOps market. Despite a modest revenue beat, GitLab’s financial results for the first quarter of fiscal year 2026 exceeded expectations, particularly in non-GAAP operating income, which was significantly above street estimates. This indicates strong underlying business leverage and suggests that GitLab is well-positioned to capitalize on growth opportunities.
Additionally, Ikeda points to the evolving landscape of software development, where AI-powered tools are becoming increasingly prevalent. GitLab’s platform, particularly with its upcoming version 18, is poised to benefit from these trends, potentially gaining market share. The company’s strong billing and remaining performance obligations growth further support the positive outlook. Given these factors, Ikeda sees any short-term share price weakness as an attractive buying opportunity, justifying the Buy rating and a price objective of $72.
In another report released today, Needham also maintained a Buy rating on the stock with a $55.00 price target.
Based on the recent corporate insider activity of 86 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GTLB in relation to earlier this year.