GitLab price target lowered to $85 from $88 at BofA

BofA analyst Koji Ikeda lowered the firm’s price target on GitLab to $85 from $88 and keeps a Buy rating on the shares. GitLab will likely be under pressure after earnings for two reasons: namely that its comments on a “less” conservative guidance methodology puts into question revenue upside potential and that its FY25 pro-forma operating margin guidance of approximately 1% could imply that “a much higher expense profile is necessary to maintain growth,” the analyst tells investors. However, the firm still thinks GitLab is positioned to be a disruptor and share gainer in the large and growing DevSecOps total addressable market, the analyst added.