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Investing.com - Wolfe Research has lowered its price target on GitLab Inc (NASDAQ:GTLB) to $52.00 from $55.00 while maintaining an Outperform rating on the stock. The company, currently valued at $7.75 billion, has demonstrated impressive growth with revenue increasing by 29.31% over the last twelve months.
The firm notes that GitLab stock currently trades at approximately 5.6 times the enterprise value to calendar year 2026 base case revenue, including after-hours movement, representing about a 20% discount compared to peer companies. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.48, indicating robust liquidity.
Wolfe Research’s scaling growth comparison group trades at median multiples of 8.4 times and 7.0 times on enterprise value to calendar years 2025 and 2026 estimated revenue, respectively.
Despite the price target reduction, the research firm remains confident in GitLab’s ability to drive platform adoption, highlighting that the company continues to be one of the fastest growers in software this year.
Wolfe Research also points to multiple product catalysts for GitLab, including GitLab Ultimate, AI features with Duo Agent Platform upcoming release, and Workflows, as enterprises continue to invest heavily in developer tools.
In other recent news, GitLab Inc. reported its second-quarter earnings for fiscal year 2026, revealing a notable performance that exceeded market expectations. The company announced an earnings per share (EPS) of $0.24, surpassing the anticipated $0.16, marking a 50% surprise over analyst forecasts. GitLab’s revenue also outperformed projections, reaching $236 million compared to the expected $226.9 million. These results highlight the company’s strong financial health and have contributed to a positive reaction from investors. The earnings beat has drawn attention from market analysts, although specific upgrades or downgrades were not mentioned in the reports. The latest earnings announcement underscores GitLab’s ability to exceed financial targets, which is crucial for investor confidence. These developments reflect the company’s current momentum and strategic execution in the market.
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