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On Wednesday, Piper Sandler expressed continued confidence in GitLab Inc (NASDAQ:GTLB), maintaining an Overweight stock rating and a price target of $85.00. The firm’s stance comes amid a broader analysis of the Security & Infrastructure Software (ETR:SOWGn) sector, with a focus on companies poised to demonstrate strong momentum in the face of macroeconomic uncertainties.
According to Piper Sandler, GitLab’s performance throughout fiscal year 2025 stood out as one of the best within their coverage area. The firm anticipates that new management priorities are likely to enhance this momentum going into the first quarter. GitLab’s impressive 30.93% revenue growth and industry-leading gross margin of 88.79% support this positive outlook. InvestingPro data reveals several additional positive indicators, with 8 more exclusive ProTips available to subscribers.
The confidence in GitLab was further bolstered by investor meetings held in mid-April, which Piper Sandler hosted. These discussions reaffirmed the company’s position as a top pick within the sector, citing multiple growth drivers and a business model that is both resilient and adaptable.
While Integrated Development Environment (IDE) downloads, serving as a proxy for GitLab’s Duo product, showed a slowdown in the first quarter, they remained robust in absolute terms. Piper Sandler expects to see some modest upside for the quarter and a slight upward revision to the full-year forecast for GitLab. With the next earnings report scheduled for June 9th, investors can access comprehensive analysis and Fair Value estimates through InvestingPro’s detailed research reports, available for over 1,400 US stocks including GitLab.
In other recent news, GitLab Inc has drawn significant attention from analysts and investors following its robust financial performance and strategic initiatives. Cantor Fitzgerald has maintained its Overweight rating with a $70 price target, projecting GitLab’s F1Q26 earnings to slightly exceed the company’s guidance, with revenue estimated at $212.6 million and earnings per share (EPS) expected to match the upper end of guidance at $0.15. BofA Securities also reaffirmed its Buy rating and a $90 price target, highlighting GitLab’s potential for revenue growth, projected to outpace its peers by FY26/CY25, driven by its AI products and customer acquisition strategies.
TD Cowen expressed confidence in GitLab’s growth trajectory, maintaining a Buy rating with an $82 price target, following a fourth-quarter performance that surpassed expectations. The company’s Ultimate SKU and Generative AI technology were noted as significant contributors to its success. Meanwhile, RBC Capital Markets reiterated an Outperform rating with an $80 price target, citing GitLab’s strong year-end performance and strategic leadership appointments as positive indicators for future growth.
Piper Sandler also maintained an Overweight rating and an $85 price target, emphasizing GitLab’s strong fourth-quarter results and the introduction of new products like Duo as key growth drivers. The firm remains optimistic about GitLab’s future, positioning it as a top pick within their coverage. These recent developments reflect a broad consensus among analysts about GitLab’s potential for sustained growth and market success.
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