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Investing.com - Rosenblatt Securities maintained its Buy rating and $58.00 price target on GitLab Inc (NASDAQ:GTLB), a company with a $7.75 billion market cap and "Fair" overall financial health according to InvestingPro analysis, following the company’s second-quarter results.
GitLab reported revenue growth of 29% year-over-year to $236.0 million in the second quarter, approximately 4% above Rosenblatt’s revenue estimates. The performance was primarily driven by subscription revenue, which grew 30% year-over-year and represented 90% of total revenue. The company maintains impressive gross profit margins of 88.64% and a healthy current ratio of 2.48, according to InvestingPro data.
The company issued third-quarter guidance below consensus expectations while maintaining its fiscal year 2026 revenue guidance range of $936-$942 million, which implies slower growth in the fourth quarter.
Rosenblatt analyst Blair Abernethy noted that following the second-quarter results, the firm is "marginally adjusting" its fiscal year 2026-2027 growth forecasts for GitLab.
Despite these adjustments, Rosenblatt has maintained its $58 price target on GitLab stock, reflecting continued confidence in the company’s long-term prospects. Analyst consensus remains strongly bullish, with targets ranging from $44 to $76. Get access to GitLab’s complete financial health analysis and 8 additional key insights through InvestingPro’s comprehensive research report.
In other recent news, GitLab reported a 29% revenue growth in its second-quarter earnings, marking one of the highest growth rates in the software sector. Despite exceeding its revenue guidance by $9 million, the company maintained its fiscal year 2026 outlook due to incremental softness in the SMB market and ongoing go-to-market changes. Analysts have been adjusting their price targets for GitLab, reflecting various concerns and observations. Canaccord Genuity lowered its price target to $70, citing the company’s continued revenue growth from seat expansions. UBS also adjusted its target to $60, following GitLab’s recent earnings report. KeyBanc revised its target to $53 due to execution concerns related to go-to-market changes and potential AI disruptions. DA Davidson further reduced its price target to $45, noting the departure of GitLab’s CFO and attributing the quarterly upside to timing factors rather than a fundamental business acceleration. Needham, however, reiterated its Buy rating with a $55 price target amid these developments.
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