Barclays raises GitLab stock price target to $165, maintains rating

Published 04/03/2025, 11:28
Barclays raises GitLab stock price target to $165, maintains rating

On Tuesday, Barclays (LON:BARC) analyst Ryan MacWilliams updated the firm’s outlook on GitLab Inc (NASDAQ:GTLB), increasing the price target to $165 from the previous $145 while continuing to hold an Equalweight rating on the shares. The stock, currently trading at $56.25 with a market capitalization of $9.13 billion, has seen 24 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.

The revision in the price target comes as MacWilliams adjusts the company’s estimated EBITDA for the fiscal years 2025 and 2026 to $1,174 million and $1,368 million, respectively. This adjustment marks a slight change from the former estimates of $1,204 million for 2025 and $1,366 million for 2026. The new price target is based on an 8.0x multiple of the projected 2026 EBITDA, a decrease from the 9.0x multiple previously applied to the 2025 EBITDA. Notable is GitLab’s impressive gross profit margin of 89%, though the company maintains an EBITDA of -$147.82 million for the last twelve months.

The rationale provided by the Barclays analyst for the lower target multiple includes the uncertainty surrounding tariffs, particularly those in Canada and Mexico, as well as a history of earnings misses or reductions in full-year guidance observed last year.

Despite the increase in the price target, Barclays maintains an Equalweight rating on GitLab stock. This suggests that the firm believes the stock is valued appropriately relative to the market or its peers and does not recommend either buying or selling at this time. For deeper insights into GitLab’s valuation and financial health metrics, including exclusive Fair Value calculations and additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

GitLab Inc, which is traded on the NASDAQ, is monitored by investors and analysts for its financial performance, including EBITDA, which is a key indicator of a company’s operating profitability. The updated figures and price target provided by Barclays reflect the latest analysis and expectations for the company’s financial trajectory. Current analyst targets range from $60 to $90, with the stock showing a beta of 0.64, indicating lower volatility compared to the broader market.

In other recent news, GitLab Inc. reported strong financial results for the fourth quarter and fiscal year 2025, with revenue reaching $211.4 million, marking a 29% year-over-year increase. The company’s earnings per share (EPS) of $0.33 exceeded analysts’ expectations of $0.23, reflecting GitLab’s successful execution of its growth strategy. The company’s full-year revenue also saw a substantial rise, reaching $759.2 million, a 31% increase from the previous fiscal year. GitLab has projected its fiscal year 2026 revenue to be between $936 million and $942 million, representing a 24% growth. Analyst firms BTIG and Mizuho (NYSE:MFG) have weighed in on GitLab’s performance, with BTIG maintaining a Buy rating and a price target of $86, while Mizuho adjusted its price target to $72 but maintained an Outperform rating. GitLab’s premium product tiers, including Ultimate and Duo, have shown robust demand, contributing significantly to the company’s strong financial performance. The company continues to expand its product offerings, with new initiatives like Duo Enterprise and GitLab Dedicated gaining traction in the market. These developments underscore GitLab’s position as a leader in the DevSecOps market, with a focus on innovation and customer expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.