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UBS lowered its price target on GitLab Inc (NASDAQ:GTLB) to $73.00 from $85.00 on Wednesday, while maintaining a Buy rating on the software development platform company. The company, currently valued at $8.01 billion, maintains strong financial health with impressive gross profit margins of 88.79% and a healthy current ratio of 2.45.
GitLab reported first-quarter results with 27% revenue growth, which UBS described as "still-strong" and at the "high end of the software sector." The company’s revenue beat of $1.5 million (1%) was its smallest ever, according to UBS. InvestingPro data shows the company maintained robust growth with trailing twelve-month revenue growth of 30.93%.
The firm noted that GitLab maintained its fiscal year 2026 guidance without raising it, while sequential revenue growth of just $3 million reversed "a trend of five consecutive quarters of positive y/y growth in sequential adds."
UBS reduced its fiscal year 2026 revenue growth estimate for GitLab to 26% from 28%, citing concerns about macroeconomic impacts and potential artificial intelligence risks related to developer headcount growth.
The firm suggested much of the negative sentiment is already reflected in GitLab’s stock price, with shares trading at 5.5 times calendar year 2026 estimated revenue.
In other recent news, GitLab Inc reported its first-quarter fiscal 2026 results, which showed a revenue growth of 27%, slightly surpassing analysts’ expectations. Despite this, the company’s performance was considered mixed, leading several firms to adjust their price targets. TD Cowen reduced its target from $75 to $67 while maintaining a Buy rating, citing a higher Software-as-a-Service mix as a factor. Similarly, RBC Capital lowered its target from $68 to $62 but kept an Outperform rating, noting that GitLab’s revenue beat was lower than anticipated. Truist Securities also adjusted its price target from $80 to $75, maintaining a Buy rating and expressing confidence in GitLab’s business position. Piper Sandler reiterated its Overweight rating with an $85 target, highlighting GitLab’s solid performance and free cash flow beat. DA Davidson maintained a Neutral rating with a $45 target, noting GitLab’s enterprise expansion strategy as a key driver. Despite varied analyst perspectives, GitLab’s management maintained their fiscal year 2026 revenue guidance.
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