Rosenblatt initiates GitLab stock coverage with Buy rating and $58 target
Investing.com
Published Jul 15, 2025 01:28AM ET
Investing.com - Rosenblatt Securities initiated coverage on GitLab Inc (NASDAQ:GTLB) with a Buy rating and a price target of $58.00 on Tuesday. The company, which boasts impressive gross margins of 88.6% and has achieved 29.3% year-over-year revenue growth, has attracted strong analyst interest with 14 analysts recently revising earnings estimates upward according to InvestingPro data.
The research firm highlighted GitLab's position as a leading DevOps platform used by software engineers and IT operations teams throughout the application development lifecycle.
Rosenblatt noted that GitLab began as an open-source CI/CD tool and has expanded into a comprehensive DevSecOps platform that integrates source code management, CI/CD workflows, application testing, security, project management, and monitoring capabilities.
The firm emphasized that GitLab delivers an integrated experience across multiple user types by combining all key aspects of the Software Development Lifecycle on a single platform, which increases productivity and reduces friction.
Rosenblatt identified significant growth potential for GitLab, citing the increasing complexity of modern cloud and emerging generative AI applications, along with upsell opportunities within the company's product offerings.
In other recent news, GitLab Inc reported a first-quarter revenue growth of 27%, with a modest beat of $1.5 million, according to UBS. Despite this, UBS lowered its price target for GitLab to $73.00, citing macroeconomic concerns and potential AI risks. Macquarie also adjusted its price target to $75.00, describing GitLab's first-quarter performance as "disappointing" despite a 40% year-over-year growth in remaining performance obligations. Canaccord Genuity reduced its price target to $76.00, maintaining a Buy rating and highlighting GitLab's strong revenue growth from seat expansions. Meanwhile, William Blair reiterated an Outperform rating following GitLab's release of GitLab 18, emphasizing the company's mid-20s top-line growth and strong retention rates.
BofA Securities reaffirmed its Buy rating with a $72.00 price target, expressing confidence in GitLab's long-term market share potential and its "Duo strategy" for AI integration. William Blair noted GitLab's latest software release includes significant product improvements and partnerships with Amazon (NASDAQ:AMZN) and Anthropic, aiming to enhance security and streamline application delivery. GitLab's non-GAAP operating margin expanded by 14 percentage points, with the company raising its full-year operating income and EPS guidance. These recent developments reflect GitLab's efforts to maintain durable revenue growth and expand its market presence amidst a competitive landscape.
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