GitLab stock price target lowered to $70 from $76 at Canaccord Genuity

Investing.com - Canaccord Genuity reduced its price target on GitLab Inc (NASDAQ:GTLB) to $70 from $76 on Thursday, while maintaining a Buy rating on the software development platform provider. The company, currently valued at $7.75 billion, trades at $46.91, with analyst targets ranging from $44 to $76.

The firm cited GitLab’s continued revenue growth from seat expansions as evidence that the platform’s value proposition remains compelling to customers, even in the current software buying environment. InvestingPro data shows impressive revenue growth of 29.31% and an exceptional gross profit margin of 88.64%, with additional financial health indicators available to subscribers.

Canaccord Genuity highlighted that investing in the software supply chain continues to be a top priority for IT buyers, noting GitLab’s "unique" end-to-end platform approach that begins with source code.

The research firm expects operating leverage to "naturally emerge" as GitLab scales, following the company’s achievement of profitability in what Canaccord describes as "a large software deployment market."

The price target reduction reflects a valuation of approximately 9.5 times calendar 2026 estimated enterprise value to revenue, down from the previous multiple of about 10.5 times calendar 2025 estimates, which Canaccord considers "fair" given GitLab’s growth and margin profile.

In other recent news, GitLab Inc reported its second-quarter fiscal 2026 results, exceeding the high-end of its revenue guidance by $9.0 million. Despite this, the company maintained its fiscal year 2026 outlook, citing softness in the SMB market and ongoing changes in its go-to-market strategy. UBS highlighted GitLab’s 29% revenue growth, one of the highest in the software sector, and maintained a Buy rating while lowering its price target to $60.00 from $73.00. KeyBanc also lowered its price target to $53.00 from $60.00, citing concerns about execution and potential disruption from artificial intelligence. DA Davidson reduced its price target to $45.00 from $50.00, noting that the stronger-than-typical quarterly performance was partly due to timing factors. Raymond James adjusted its price target to $55.00 from $60.00, acknowledging the strong upside in GitLab’s second-quarter results. Needham reiterated a Buy rating with a $55.00 price target, pointing out the company’s go-to-market changes under Chief Revenue Officer Ian Steward. These developments reflect mixed analyst reactions to GitLab’s recent financial performance and strategic adjustments.

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