UBS analyst Karl Keirstead maintained a Buy rating on Gitlab today and set a price target of $51.00.
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Karl Keirstead has given his Buy rating due to a combination of factors that highlight GitLab’s potential despite some challenges. GitLab continues to demonstrate robust revenue growth, achieving a 25% increase, and its remaining performance obligations (RPO) are also up by 25-30%. The company has shown improvement in non-GAAP operating margins, which increased by nearly 500 basis points. This indicates a strong financial performance even as growth decelerates faster than anticipated.
Despite the mixed sentiment and concerns about AI-related disruptions, GitLab’s valuation remains attractive, trading at less than 6 times its expected CY26 revenue with rising margins. Although investor sentiment is currently cautious, the company’s strategic positioning and potential for mid-to-high teens revenue growth in CY26 make it a compelling investment. The price target has been adjusted from $60 to $51, reflecting a conservative outlook, yet maintaining a Buy rating due to the underlying growth prospects and market positioning.
Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GTLB in relation to earlier this year.