RBC maintains GitLab stock Outperform rating, $80 price target

Published 04/03/2025, 17:16
RBC maintains GitLab stock Outperform rating, $80 price target

On Tuesday, RBC Capital Markets reiterated their positive stance on GitLab Inc (NASDAQ:GTLB), maintaining an Outperform rating with a steady price target of $80.00. The firm’s analysis followed GitLab’s announcement of a robust year-end performance, which exceeded consensus expectations and the company’s own high-end guidance. According to InvestingPro data, GitLab maintains strong financial health with more cash than debt on its balance sheet and a current ratio of 2.47x.

GitLab’s revenue, operating margin (OM), and earnings per share (EPS) surpassed the anticipated figures, signaling a strong close to the fiscal year. The company achieved impressive revenue growth of 30.93% and maintains industry-leading gross margins of 88.79%. This performance is attributed to the continued momentum of the company’s DevSecOps portfolio, which integrates software development, security, and operations. InvestingPro subscribers can access 8 additional key insights about GitLab’s financial performance and outlook.

Looking forward, GitLab provided revenue guidance for FY/26, projecting a year-over-year growth of 24%, which aligns with market expectations. The company’s newly appointed CEO, Mr. Staples, has laid out his key priorities, which are looked upon favorably by RBC Capital.

In addition to the CEO’s forward-looking strategy, GitLab announced Ian Steward as the new Chief Revenue Officer (CRO), a move that could further reinforce the company’s growth trajectory.

RBC Capital’s analyst expressed confidence in GitLab’s potential for multiple upside catalysts, citing the company as their top Small to Mid-cap (SMID-cap) idea. The reiterated Outperform rating and $80 price target reflect the firm’s belief in GitLab’s ongoing and future performance.

In other recent news, GitLab Inc has received several positive endorsements from major analyst firms following its robust financial performance. Piper Sandler reiterated an Overweight rating, maintaining a price target of $85, highlighting the company’s strong fourth-quarter results with a 34% growth in calculated remaining performance obligations and an 18% operating margin. KeyBanc Capital Markets also maintained an Overweight rating with an $80 price target, citing GitLab’s modest earnings beat and successful large deal acquisitions, including a new reference win with Anthropic. Cantor Fitzgerald echoed this sentiment, reiterating its Overweight rating with an $80 price target, focusing on GitLab’s growth potential and market consolidation efforts.

Macquarie analysts maintained an Outperform rating with a $90 price target, emphasizing the company’s 29% year-over-year revenue growth and significant improvement in non-GAAP operating margin. Additionally, Needham reaffirmed its Buy rating with an $85 price target, noting GitLab’s alignment with FY26 revenue and operating income guidance and the strong market performance of its Ultimate product. GitLab’s recent strategic moves, such as appointing a new Chief Revenue Officer and expanding its board, have been well-received, contributing to a positive outlook from these firms. The introduction of new products, like Duo and Dedicated offerings, has been highlighted as key drivers for future growth. These developments indicate strong investor confidence in GitLab’s ongoing trajectory and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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