William Blair reiterates outperform rating on GitLab stock after release
Investing.com
Published Jun 26, 2025 09:04AM ET
Investing.com - William Blair reiterated an Outperform rating on GitLab Inc (NASDAQ:GTLB), currently trading at $42.59, following the company's virtual launch of GitLab 18, its latest software release featuring over 30 product improvements.
The most significant announcement was the introduction of GitLab Duo Agent Platform, which allows users to employ AI agents across all aspects of the software development lifecycle. According to an internal survey cited by William Blair, developers currently spend only 20% of their time writing code, creating opportunities to leverage AI for other development tasks.
GitLab also unveiled new capabilities focused on security and compliance while expanding partnerships with Amazon (NASDAQ:AMZN) and Anthropic. The innovations in the GitLab 18 release support the company's vision of becoming a comprehensive DevSecOps platform that enhances security and streamlines application delivery.
William Blair highlighted GitLab's strong financial performance, noting mid-20s top-line growth, over 120% net revenue retention, and more than 90% gross revenue retention. The firm also pointed to GitLab's consistent execution record.
The research firm maintained its Outperform rating on GitLab stock, citing the likelihood of upside to its forecasts based on the company's current trajectory and recent product enhancements. According to InvestingPro analysis, GitLab appears slightly undervalued at current levels, with 14 analysts recently revising their earnings estimates upward for the upcoming period.
In other recent news, GitLab Inc reported a 27% revenue growth for the first quarter, which was described as strong but led to a mixed reception among analysts. Macquarie noted a modest $1.5 million revenue beat, which was the smallest ever for GitLab, and maintained its Outperform rating while lowering the price target to $75. UBS also lowered its price target to $73, citing macroeconomic concerns and potential AI risks. TD Cowen reduced its price target to $67, acknowledging the mixed quarterly performance but maintaining a Buy rating. Canaccord Genuity adjusted its price target to $76, emphasizing GitLab's strong revenue growth from seat expansions and its profitability achievement. DA Davidson reiterated a Neutral rating with a $45 price target, noting timing issues in the quarterly report but highlighting successful enterprise expansion deals. Despite the varied analyst responses, GitLab maintained its fiscal year 2026 revenue guidance and expanded its non-GAAP operating margin by 14 percentage points year-over-year.
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Written By: Investing.com
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