Gitlab (GTLB – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Shrenik Kothari from Robert W. Baird maintained a Buy rating on the stock and has a $76.00 price target.
Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Gitlab’s strong financial performance and strategic positioning. The company reported a significant increase in deferred revenue contribution, with $331.8 million recognized during FY25, accounting for 43.7% of total revenue. This indicates a robust demand for Gitlab’s offerings and a healthy pipeline of future revenue.
Additionally, Gitlab’s growth in registered users, now exceeding 50 million, and its expansion in global markets with customers in over 152 countries, underscore its widespread adoption and market reach. The company’s focus on enterprise and public sector clients, which contribute over 70% of its annual recurring revenue, further solidifies its stable revenue base. Despite a slight quarterly decline, the year-over-year increase in SaaS revenue reflects Gitlab’s successful transition to a subscription-based model, enhancing its long-term revenue prospects.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $90.00 price target.
Based on the recent corporate insider activity of 88 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.