GitLab price target lowered to $67 from $75 at TD Cowen

TD Cowen lowered its price target on GitLab (NASDAQ:GTLB) stock to $67.00 from $75.00 on Wednesday, while maintaining a Buy rating on the software development platform. According to InvestingPro data, the company maintains impressive gross profit margins of 88.79% and shows strong liquidity with a current ratio of 2.45.

The price target reduction follows GitLab’s mixed first-quarter results, which showed revenue growth of 27%, slightly above the Street’s expectation of 26%. While the quarterly beat was modest, InvestingPro data reveals the company’s impressive trailing twelve-month revenue growth of 30.93%.

GitLab maintained its fiscal year 2026 revenue guidance despite the mixed quarterly performance. TD Cowen noted that revenue upside was softened by linearity and higher Software-as-a-Service mix in the quarter.

Management highlighted consistent demand and bookings execution trends during their presentation, pointing out that current remaining performance obligation bookings and billings growth both directionally increased quarter-over-quarter.

TD Cowen characterized the more than 10% sell-off in GitLab shares as an "overreaction" to the quarterly results, supporting its decision to maintain a Buy rating despite lowering the price target.

In other recent news, GitLab Inc. has seen several adjustments to its stock price targets following its fiscal first-quarter results for 2026. RBC Capital lowered its price target to $62 from $68, maintaining an Outperform rating, while noting that GitLab’s revenue exceeded guidance but was lower than expected. Truist Securities also reduced its price target to $75 from $80, retaining a Buy rating, and highlighted GitLab’s potential in consolidating a fragmented market. Piper Sandler kept its Overweight rating and $85 price target, acknowledging GitLab’s modest revenue beat but emphasizing the company’s strong fundamentals, including a robust artificial intelligence portfolio.

Additionally, Bernstein SocGen Group adjusted its price target to $70 from $76, citing macroeconomic concerns and GitLab’s decision not to raise full-year guidance. Needham analysts made a more significant reduction, lowering the price target to $55 from $85, while maintaining a Buy rating despite GitLab’s thinnest revenue beat on record. Despite these adjustments, analysts from multiple firms expressed continued confidence in GitLab’s growth prospects and strategic positioning, particularly in leveraging artificial intelligence and its platform capabilities. GitLab’s management has attributed recent performance to situational challenges rather than fundamental issues, with an emphasis on strong government demand and new accreditations. These developments reflect the ongoing market dynamics and investor sentiment surrounding GitLab as it navigates current economic conditions.

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