BofA ups GitLab target to $78 with survey suggesting Q3 beat

BofA analyst Koji Ikeda raised the firm’s price target on GitLab to $78 from $76 and keeps a Buy rating on the shares. The stock in afternoon trading is down 27c to $38.58. Recent survey results suggest installed-base spending intentions on GitLab "should remain relatively healthy" in 2023, Ikeda tells investors in a research note. The analyst says this increases confidence that the "strong beat-and-raise trend" the business has been displaying since the initial public offering should continue when GitLab reports fiscal Q3 results on December 5. Of the 213 GitLab users surveyed, 56% plan to increase spending in 2023, compared to 33% that plan to decrease spending, notes Ikeda. He views this as a positive heading into next year and believes the survey results suggest "there is still plenty of white space for GitLab to expand within its installed-base."