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GitLab’s Strategic AI Integration and Market Positioning Drive Buy Rating

GitLab’s Strategic AI Integration and Market Positioning Drive Buy Rating

Bank of America Securities analyst Koji Ikeda maintained a Buy rating on Gitlab (GTLBResearch Report) yesterday and set a price target of $72.00.

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Koji Ikeda has given his Buy rating due to a combination of factors that highlight GitLab’s strategic positioning and growth potential. One of the key reasons is the integration of AI capabilities throughout its DevSecOps workflows, particularly with the release of version 18.0. This update includes Duo features in Premium and Ultimate tier subscriptions, expanding the monetization potential by making Duo Enterprise available to a broader user base. These enhancements are expected to drive GitLab’s revenue growth trajectory, positioning it as a long-term leader in the $53 billion DevSecOps market.
Furthermore, GitLab’s focus on its AI agentic offering, particularly the Duo Agent Platform, is anticipated to significantly boost developer productivity by automating a substantial portion of development workflows. This, coupled with a strong emphasis on security and compliance, makes GitLab an attractive choice for enterprises seeking comprehensive solutions. Additionally, the rebound in software developer job postings supports the demand for GitLab’s seat-based pricing model, reinforcing the positive outlook on its financial performance. These factors collectively underpin Ikeda’s Buy rating and the price objective of $72.

According to TipRanks, Ikeda is a 5-star analyst with an average return of 12.7% and a 59.14% success rate. Ikeda covers the Technology sector, focusing on stocks such as Datadog, nCino, and Onestream, Inc. Class A.

In another report released on June 19, RBC Capital also maintained a Buy rating on the stock with a $62.00 price target.

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