BofA maintains GitLab stock Buy rating, confident in growth outlook

On Tuesday, BofA Securities expressed continued confidence in GitLab Inc (NASDAQ:GTLB), maintaining a Buy rating and a $90.00 price target for the company’s shares, representing a significant upside from the current price of $52.12. The affirmation followed a recent investor meeting with GitLab’s VP of Investor Relations, Kelsey Turcotte, which reinforced the firm’s positive stance on the company’s growth prospects. With an overall consensus recommendation of 1.5 (Strong Buy), analysts share BofA’s optimistic outlook.For deeper insights into GitLab’s valuation and growth potential, InvestingPro offers comprehensive analysis including 10+ additional expert tips and detailed financial metrics.

BofA Securities highlighted several key factors that support GitLab’s potential for revenue growth, projecting it to outpace the average of its infrastructure software peers by FY26/CY25. The anticipated growth rate of 24% year-over-year is significantly higher than the 13% average of its peers, building on the company’s impressive 30.93% revenue growth in the last twelve months. The optimism is underpinned by GitLab’s multiple growth drivers, the introduction of Duo and its suite of AI products and features, and a strategic approach to acquiring new customers. The company maintains an exceptional gross profit margin of 88.79%, demonstrating strong operational efficiency.

The meeting with GitLab’s VP of IR provided deeper insights into the company’s strategies and offerings. BofA Securities was particularly impressed with the details shared about Duo, GitLab’s AI-driven portfolio, which is expected to be a pivotal element in the company’s growth trajectory.

GitLab’s focus on driving new logo growth is another aspect that BofA Securities believes will contribute to the company’s strong performance. The firm anticipates that GitLab’s consistent delivery of robust results will act as a catalyst for the company’s stock value in the future.

In conclusion, BofA Securities reiterated its Buy rating and price target for GitLab, signaling a strong vote of confidence in the company’s ability to achieve and sustain higher revenue growth relative to its industry peers. The firm’s analysis suggests that GitLab is well-positioned to capitalize on its growth drivers and AI innovations to enhance its market presence and financial performance.

In other recent news, GitLab Inc. reported a strong fourth-quarter performance, with revenue growth of 29%, surpassing the Street’s projection of 26%. The company also announced fiscal year 2026 guidance, predicting a growth rate of 23-24%, aligning with market expectations. Analysts from TD Cowen, RBC Capital Markets, Piper Sandler, KeyBanc Capital Markets, and Cantor Fitzgerald have all maintained positive ratings on GitLab, reflecting confidence in the company’s continued growth trajectory. TD Cowen maintained a Buy rating with an $82 price target, while RBC Capital Markets and KeyBanc both reiterated Outperform and Overweight ratings with an $80 price target. Piper Sandler maintained an Overweight rating with an $85 price target, highlighting GitLab’s strong execution and new product introductions like Duo as key growth drivers. The company’s strategic initiatives, including the appointment of a new Chief Revenue Officer and the introduction of Gen-AI capabilities, have been well-received, indicating potential for further market share expansion. Cantor Fitzgerald emphasized GitLab’s position as a leading AI-powered DevSecOps platform, maintaining an Overweight rating and an $80 price target, citing its growth potential and market consolidation efforts. These developments underscore GitLab’s robust financial performance and strategic direction, which have impressed analysts and investors alike.

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