Gold prices hold losses as US-EU trade deal eases safe‑haven demand
DA Davidson reiterated its Neutral rating and $45.00 price target on GitLab Inc (NASDAQ:GTLB) Wednesday, aligning closely with InvestingPro’s Fair Value assessment. The research firm’s decision follows GitLab’s quarterly report showing less upside than typical to start fiscal year 2026. With a market capitalization of $8 billion and analyst targets ranging from $45 to $90, the stock currently trades near its lower target range.
The software development platform’s performance was partially affected by timing issues, according to DA Davidson. Despite this, GitLab’s core drivers—Ultimate, Dedicated, and Duo—successfully drove large expansion deals in the enterprise segment during the quarter. The company maintains impressive gross profit margins of 89% and showed strong revenue growth of 31% in the last twelve months.
GitLab CEO Bill Staples expressed optimism about potential benefits to the platform from the release of GitLab 18.0. The new version represents a significant update to the company’s DevOps platform. Want deeper insights? InvestingPro offers 8 additional key tips about GitLab’s financial health and growth prospects, along with comprehensive analysis in the Pro Research Report.
DA Davidson indicated that GitLab’s current growth trajectory appears reasonably priced into the stock, justifying the maintained Neutral stance. The firm’s $45 price target remains unchanged following the earnings report.
The company continues to focus on its enterprise expansion strategy through its premium offerings, with Ultimate, Dedicated, and Duo highlighted as key drivers for larger deals despite the less-than-typical quarterly upside.
In other recent news, GitLab’s first-quarter fiscal 2026 results have led to multiple adjustments in stock price targets by several analyst firms. TD Cowen lowered its price target to $67 from $75, maintaining a Buy rating, following GitLab’s revenue growth of 27%, which slightly exceeded expectations but was below historical averages. RBC Capital also reduced its price target to $62 from $68 while retaining an Outperform rating, citing the revenue beat as lower than anticipated but maintaining a positive outlook due to GitLab’s consistent revenue guidance for fiscal year 2026.
Truist Securities adjusted its price target to $75 from $80, continuing with a Buy rating, and noted GitLab’s strong core offerings despite a less-than-expected performance. Piper Sandler kept its Overweight rating and $85 price target, highlighting GitLab’s solid performance amid a challenging environment, particularly noting acceleration in short-term billings growth and a significant free cash flow beat. Despite the modest revenue beat, GitLab maintained its fiscal guidance, which Piper Sandler acknowledged might not meet momentum investors’ expectations.
Overall, GitLab’s consistent revenue guidance and growth drivers were recognized by analysts, with firms like RBC Capital and Piper Sandler expressing optimism about the company’s future prospects. GitLab’s management highlighted consistent demand and bookings execution trends, contributing to the maintained guidance for fiscal year 2026. The company’s strategic focus on artificial intelligence and enterprise relationships was also noted as a potential area for growth by Truist Securities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.