GitLab stock rating maintained at Outperform by RBC amid solid results

Investing.com - RBC Capital has reiterated its Outperform rating and $58.00 price target on GitLab Inc (NASDAQ:GTLB) following the company’s quarterly earnings report. The target represents significant upside potential from the current price of $46.91, with analyst targets ranging from $46 to $76.

The firm noted that GitLab delivered solid results while maintaining its fiscal year 2026 revenue guidance, which RBC described as conservative due to small and medium-sized business pressures and go-to-market changes intended to position the company for its next $1 billion in revenue. InvestingPro data shows impressive revenue growth of 29.31% over the last twelve months, supported by robust gross margins of 88.64%.

Key highlights from the quarter included benefits from improved bookings linearity, the self-managed/SaaS mix, and seats accounting for 70% of revenue growth, along with discussions around consumption pricing models.

RBC also acknowledged the upcoming departure of CFO Brian Robins, who is stepping down to pursue an opportunity at Snowflake, alongside several other management changes that were announced.

The firm expressed confidence that business trends for GitLab remain durable, suggesting that de-risked second-half estimates create a favorable setup for the company going forward.

In other recent news, GitLab Inc. reported a strong performance in its second-quarter fiscal 2026 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.24, significantly beating the forecasted $0.16, and reported revenue of $236 million, exceeding the projected $226.9 million. Despite this strong performance, Goldman Sachs lowered its price target for GitLab to $48, citing growth concerns, while maintaining a Neutral rating. BofA Securities, however, kept its Buy rating and a $72 price target, highlighting GitLab’s subscription revenue growth, which accelerated to 30.3% year-over-year. Wolfe Research also adjusted its price target to $52 from $55 but maintained an Outperform rating, noting the stock’s current trading discount compared to peers. These developments reflect mixed analyst sentiments following GitLab’s quarterly results.

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