GitLab stock holds Buy rating at BofA as Agent Platform enters public beta

Published 18/07/2025, 16:30
GitLab stock holds Buy rating at BofA as Agent Platform enters public beta

Investing.com - BofA Securities maintained its Buy rating and $72.00 price target on GitLab Inc (NASDAQ:GTLB), representing a 37% upside from current levels, following the company’s announcement that its Agent Platform has entered public beta. According to InvestingPro data, 14 analysts have recently revised their earnings expectations upward for the upcoming period.

The DevSecOps platform vendor’s Agent Platform, designed to integrate agentic capabilities across developer workflows, has progressed from private beta to public beta, which represents the final stage before general availability. The company maintains impressive gross profit margins of 89% and holds more cash than debt on its balance sheet.

BofA Securities views this as a significant announcement, noting that Agent Platform’s production deployment and revenue generation are becoming key investment considerations for GitLab.

The financial services firm expects Agent Platform to become generally available either later this year or in early 2026, potentially serving as a meaningful growth driver for the company.

BofA Securities highlighted GitLab’s current valuation at 5.5x EV/FY27E revenue compared to infrastructure peers at 6.3x, suggesting an "enhanced buying opportunity" for what it considers a market share gainer in the DevSecOps category.

In other recent news, GitLab Inc. has launched the public beta of its GitLab Duo Agent Platform, a DevSecOps orchestration platform designed to enhance collaboration between developers and AI agents. This platform is currently available to GitLab Premium and Ultimate customers and includes features such as Software (ETR:SOWGn) Development Flow and GitLab Duo Agentic Chat, which aim to improve productivity and efficiency in the software development lifecycle. Meanwhile, CapitalOne has downgraded GitLab’s stock from Overweight to Equal-weight, citing concerns over product differentiation as certain features become commoditized. Rosenblatt Securities has initiated coverage of GitLab with a Buy rating, highlighting the company’s comprehensive DevSecOps platform and significant growth potential.

BofA Securities has reaffirmed its Buy rating on GitLab, expressing confidence in the company’s AI strategy and long-term market share potential within the DevSecOps category. The firm expects GitLab to maintain durable revenue growth exceeding 20% with expanding free cash flow margins. William Blair has reiterated an Outperform rating on GitLab following the virtual launch of GitLab 18, which introduced over 30 product improvements and emphasized the use of AI agents across the software development lifecycle. The firm noted GitLab’s strong financial performance, including mid-20s top-line growth and over 120% net revenue retention. These developments highlight GitLab’s ongoing efforts to innovate and expand its platform capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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