How are energy investors positioned?
Investing.com - DA Davidson has assumed coverage on GitLab Inc (NASDAQ:GTLB) with a Neutral rating and a $50.00 price target, according to a research note released Friday. According to InvestingPro data, the company maintains strong financial health with a 2.48 current ratio and virtually no debt on its balance sheet.
The firm’s coverage transition comes as GitLab shares have declined approximately 22% year-to-date, with an even steeper 31% drop over the past six months, underperforming compared to the iShares Expanded Tech-Software Sector ETF (IGV), which has risen about 6% during the same period.
DA Davidson attributes the stock’s underperformance to investor concerns about competitive threats from new generative AI coding tools and perceived risks to developer headcount.
The research firm notes that GitLab currently trades at a "steep discount" to growth peers, and following last quarter’s modest earnings beat, expectations for the upcoming second-quarter fiscal 2026 results likely do not anticipate significant upside.
Despite this potentially creating a "positive setup" heading into earnings, DA Davidson indicates it is waiting for "more clear signs of the growth outlook improving" before adopting a more constructive stance on the stock.
In other recent news, GitLab Inc. is preparing for its fiscal second-quarter 2026 earnings report, with analysts maintaining various ratings on the company. TD Cowen has adjusted its price target for GitLab to $62, down from $67, while retaining a Buy rating, indicating continued healthy growth trends. Cantor Fitzgerald has reiterated an Overweight rating with a $60 price target, citing long-term growth potential driven by Ultimate adoption, Duo expansion, and increased large customer engagement. Meanwhile, BofA Securities has upheld its Buy rating and $72 price target following the public beta release of GitLab’s Agent Platform, which integrates agentic capabilities into developer workflows.
Additionally, GitLab has announced a three-year strategic collaboration with Amazon (NASDAQ:AMZN) Web Services (AWS) to expand access to GitLab Dedicated, catering to highly regulated industries. This collaboration aims to meet complex compliance requirements like data residency and private networking. The company has also launched the public beta of its GitLab Duo Agent Platform, designed to enhance collaboration between developers and AI agents. This platform is available to GitLab Premium and Ultimate customers, offering an intelligent orchestration layer for AI agents.
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