These are top 10 stocks traded on the Robinhood UK platform in July
Tuesday, GitLab Inc (NASDAQ:GTLB) received a reiterated Neutral rating and a $60.00 price target from DA Davidson, following a performance review of the company’s growth and metrics. According to InvestingPro data, analyst targets for GitLab range from $60 to $90, with 24 analysts recently revising their earnings estimates upward for the upcoming period. GitLab has reported significant traction with its Ultimate tier product, which saw a year-over-year increase of over 90%, now accounting for 50% of the company’s total Annual Recurring Revenue (ARR), up from 48% in the previous quarter.
The company also achieved a record number of new customers with ARR greater than $100,000, reaching 85 this quarter, up from 68 in the last quarter and 81 in the same period the previous year. Additionally, GitLab saw 374 net new customers with ARR above $5,000, a substantial increase from 205 in the last quarter, though slightly lower than the 427 customers added in the same period last year.
Despite these gains, GitLab’s Net Revenue Retention (NRR) slightly decreased to 123% from 126%. However, the company benefited from a significant seat contribution in the quarter, which was 75% compared to 50% previously, attributed to a large customer expansion and traction with Duo. InvestingPro analysis reveals GitLab maintains impressive gross profit margins of 89%, though it’s currently trading at premium valuation multiples. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
The company’s billings growth also accelerated, reaching 31.5% year-over-year. Furthermore, GitLab’s Remaining Performance Obligations (RPO) and calculated RPO (cRPO) continued to exhibit healthy growth at 40% and 33% year-over-year, respectively, although both metrics experienced a slight deceleration. The company maintains a strong balance sheet, with cash reserves exceeding debt obligations.
DA Davidson updated its estimates to align with GitLab’s guidance while maintaining the Neutral rating and $60 price target. This valuation is based on approximately 10 times the research firm’s estimated revenue for the calendar year 2025. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its Fair Value, with analysts predicting profitability this year.
In other recent news, GitLab Inc. reported strong financial results for the fourth quarter of fiscal year 2025, with earnings per share of $0.33, surpassing the forecasted $0.23. The company achieved a revenue of $211.4 million, marking a 29% year-over-year increase, which exceeded analysts’ expectations. For the full fiscal year, GitLab’s revenue reached $759.2 million, reflecting a 31% rise from the previous year. Analysts at BTIG maintained a Buy rating with an $86 price target, highlighting GitLab’s robust fiscal fourth-quarter results and its fiscal year 2026 guidance aligning with market predictions. Barclays (LON:BARC) raised its price target for GitLab to $165 from $145, despite maintaining an Equalweight rating due to uncertainty around tariffs and a history of earnings misses. Meanwhile, Mizuho (NYSE:MFG) adjusted its price target to $72 from $80, maintaining an Outperform rating, citing GitLab’s strong revenue growth and product demand. Truist Securities upheld its Buy rating, emphasizing confidence in GitLab’s business strategy and market position, with a price target of $90. These developments reflect various analysts’ perspectives on GitLab’s financial trajectory and market potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.