GitLab price target lowered to $45 from $60 at RBC Capital

RBC Capital analyst Matthew Hedberg lowered the firm’s price target on GitLab to $45 from $60 but keeps an Outperform rating on the shares after its Q4 results and guidance. The quarter was negatively impacted by the macro environment as sales cycles elongated and some customers slowed hiring and/or reduced headcount, resulting in lower net retention rate and creating an uptick in contractions and churn, the analyst tells investors in a research note. The firm adds however that while the near-term uncertainty likely keeps GitLab shares range-bound in the near-term, it is positive on the opportunity for acceleration in FY25 and FY26 as the price increase "rolls through the base" and generates better margins.