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Investing.com - RBC Capital has reiterated an Outperform rating on GitLab Inc (NASDAQ:GTLB) with a price target of $58.00 following meetings with the company’s CFO Brian Robins. The target represents potential upside from the current price of $50.62, though InvestingPro analysis suggests the stock is trading slightly above its Fair Value.
The investment firm gained better insight into GitLab’s guidance philosophy, recent management changes, go-to-market adjustments, and new product offerings during the discussions with the CFO. The company maintains impressive gross profit margins of 88.5% and has received positive earnings revisions from 19 analysts, according to InvestingPro data.
RBC noted that while recent go-to-market changes might create some short-term uncertainty, these concerns have already been factored into the company’s fiscal year 2026 guidance.
The firm does not anticipate additional go-to-market disruptions in fiscal year 2027, as it believes the recent changes position GitLab for its next $1 billion in revenue growth.
RBC maintained its Outperform rating based on its assessment that GitLab’s underlying business trends remain durable, while de-risked second-half estimates create a favorable near-term outlook for the company.
In other recent news, GitLab Inc reported a 29% revenue growth year-over-year in its fiscal second quarter, surpassing consensus estimates by 4%. Despite this strong performance, the company’s Chief Financial Officer, Brian Robins, announced his departure to join Snowflake, which has drawn attention. GitLab’s remaining performance obligations reached $988.2 million, marking a 32% increase year-over-year, though this was below FBN Securities’ 37% growth estimate.
In response to the latest quarterly results, several firms adjusted their price targets for GitLab. FBN Securities lowered its target to $65, maintaining an Outperform rating, while Truist Securities reduced its target to $55, citing a cautious outlook despite strong results. Piper Sandler adjusted its price target to $70, noting GitLab’s impressive revenue beat and improved margins amidst leadership changes. Mizuho also revised its target to $52, highlighting GitLab’s significant revenue growth and favorable business dynamics. Despite these adjustments, most firms maintained positive ratings on the company.
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