GitLab stock price target lowered to $60 by UBS on GTM changes

Investing.com - UBS has lowered its price target on GitLab Inc (NASDAQ:GTLB) to $60.00 from $73.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for GitLab currently range from $44 to $76, with the stock trading near $47.

The revision follows GitLab’s second-quarter earnings report, which showed 29% revenue growth, representing one of the highest growth rates across the software sector. The company delivered a 4% revenue beat, recovering from disappointing results in the previous quarter. InvestingPro data reveals an impressive gross profit margin of 88.64%, highlighting the company’s operational efficiency.

GitLab also disclosed new metrics indicating solid seat growth exceeding 10% over the past year, according to UBS’s analysis of the quarterly performance.

Despite these positive elements, UBS noted that for the second consecutive quarter, GitLab merely reaffirmed its full-year guidance rather than raising it following the revenue beat. The company also highlighted weakness in the small and medium-sized business (SMB) segment.

UBS cited go-to-market (GTM) changes that add to the stock’s risk profile, along with persistent market concerns about potential disruption from artificial intelligence, as factors contributing to its more cautious outlook on GitLab’s valuation.

In other recent news, GitLab Inc. reported strong second-quarter revenue of $236 million, showing a 29.2% year-over-year growth and surpassing both BTIG’s and Wall Street’s expectations of approximately $226.9 million. Despite this positive performance, BTIG lowered its price target for GitLab to $57, citing concerns about the company’s revenue outlook. RBC Capital maintained an Outperform rating with a $58 price target, noting GitLab’s solid results and its fiscal year 2026 revenue guidance, which they described as conservative.

Raymond James also adjusted its price target to $55, following GitLab’s strong quarterly results, which exceeded expectations. KeyBanc reduced its price target to $53, expressing concerns over GitLab’s go-to-market evolution and potential disruptions from artificial intelligence. DA Davidson lowered its price target to $45, maintaining a Neutral rating, and highlighted that the recent quarterly upside was partially due to timing factors rather than fundamental business acceleration. These developments reflect a mix of optimism and caution among analysts regarding GitLab’s future performance.

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