TD Cowen analyst Derrick Wood has maintained their bullish stance on GTLB stock, giving a Buy rating on November 17.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight Gitlab’s strong performance and potential for future growth. The company reported impressive revenue growth in the second quarter, surpassing expectations, which was driven by robust SaaS performance and on-premises gains. This positive trend is expected to continue, with enterprise checks indicating strong growth and no significant disruption from AI technologies.
Despite some challenges in the SMB sector and US Federal market, these were anticipated and not as severe as initially feared. The enterprise segment remains resilient, with increased sales efforts and a positive outlook on DevSecOps spending. Additionally, the coexistence of AI IDEs with Gitlab’s offerings is seen as a beneficial factor, contributing to code creation and overall demand. These elements combined suggest a promising trajectory for Gitlab, justifying the Buy rating.
In another report released on November 17, Guggenheim also maintained a Buy rating on the stock with a $70.00 price target.
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.