GitLab stock price target lowered to $75 from $80 at Truist Securities

Truist Securities lowered its price target on GitLab Inc (NASDAQ:GTLB) to $75 from $80 on Wednesday while maintaining a Buy rating on the software development platform. According to InvestingPro data, analysts maintain a strong bullish consensus on GitLab, with price targets ranging from $45 to $90.

The price target reduction follows GitLab’s first-quarter fiscal 2026 results, which exceeded the company’s guidance range but fell short of investor expectations, according to Truist. The underwhelming performance triggered a decline in GitLab shares during after-hours trading. Despite the market reaction, GitLab maintains impressive gross profit margins of 89% and has demonstrated strong revenue growth of 31% over the last twelve months.

Truist noted that while artificial intelligence coding assistants represent a "dynamic variable" for GitLab’s business, the firm believes the company’s core offerings supporting the software development lifecycle remain robust. The research firm sees an opportunity for GitLab to consolidate what it describes as a fragmented market.

GitLab demonstrated continued momentum with newer offerings as it adjusts its packaging strategy, showcasing its ability to leverage enterprise relationships into extended sales opportunities, according to the analyst note.

Despite the price target reduction, Truist maintained its Buy rating on GitLab stock, expressing confidence in the company’s fundamental business position and growth prospects. InvestingPro analysis reveals several positive indicators, including a strong balance sheet with more cash than debt and liquid assets exceeding short-term obligations. Discover 6 additional key insights and detailed financial metrics with an InvestingPro subscription, including exclusive access to GitLab’s comprehensive Pro Research Report.

In other recent news, GitLab Inc. reported its first-quarter results, which showed a modest revenue beat, surpassing Street estimates in a challenging environment. Piper Sandler maintained its Overweight rating and $85.00 price target, highlighting GitLab’s solid performance, including acceleration in short-term billings growth and a meaningful free cash flow beat. Meanwhile, Bernstein SocGen Group lowered its price target to $70.00 from $76.00, citing macro concerns but maintaining an Outperform rating. Needham analysts also adjusted their price target to $55.00 from $85.00, noting the thinnest revenue beat on record, while still holding a Buy rating due to GitLab’s strategic AI integration. Scotiabank (TSX:BNS) reduced its price target to $60.00 from $67.00, attributing the smaller revenue beat to linearity issues and a higher SaaS bookings mix but maintained a Sector Outperform rating. Cantor Fitzgerald decreased its price target to $60.00 from $70.00, reflecting lower peer group multiples, yet reiterated an Overweight rating. Despite these adjustments, GitLab’s management emphasized stable seat counts and strong Duo adoption, underscoring the company’s resilience amid market uncertainties.

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