DA Davidson lowers GitLab stock price target to $45 on CFO departure

Published 04/09/2025, 11:18
DA Davidson lowers GitLab stock price target to $45 on CFO departure

Investing.com - DA Davidson lowered its price target on GitLab Inc (NASDAQ:GTLB) to $45.00 from $50.00 on Thursday, while maintaining a Neutral rating on the stock. According to InvestingPro data, GitLab maintains impressive gross profit margins of 88.64% and has shown strong revenue growth of 29.31% over the last twelve months.

The firm noted that GitLab reported stronger-than-typical quarterly upside, which was partially attributed to timing factors rather than fundamental business acceleration. The company’s financial health appears solid, with InvestingPro analysis showing more cash than debt on its balance sheet and liquid assets exceeding short-term obligations.

DA Davidson highlighted that GitLab’s core business drivers—including Ultimate, Dedicated, and Duo offerings—continue to gain traction with customers, showing positive momentum in the company’s product strategy.

The research note also mentioned that GitLab announced new go-to-market changes, signaling shifts in the company’s sales and marketing approach.

Additionally, the firm acknowledged that GitLab’s Chief Financial Officer Brian Robbins will be stepping down on September 19, with James Shen appointed to serve as interim CFO during the transition period.

In other recent news, GitLab Inc reported strong second-quarter revenue of $236 million, marking a 29.2% year-over-year growth and surpassing analysts’ expectations of approximately $226.9 million. Despite this positive performance, several firms adjusted their price targets for the company. BTIG lowered its price target to $57 from $67, citing concerns about the company’s revenue outlook despite maintaining a Buy rating. Similarly, Raymond James reduced its price target to $55 from $60 while keeping an Outperform rating, following GitLab’s quarterly results. Goldman Sachs also adjusted its price target to $48 from $50, maintaining a Neutral rating due to growth concerns. Meanwhile, RBC Capital reiterated its Outperform rating with a $58 price target, noting GitLab’s solid results and maintaining its fiscal year 2026 revenue guidance. BofA Securities upheld its Buy rating and $72 price target, highlighting the company’s subscription revenue growth acceleration to 30.3% year-over-year. These recent developments reflect varied analyst perspectives on GitLab’s future performance.

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