William Blair analyst Jason Ader has maintained their bullish stance on GTLB stock, giving a Buy rating today.
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Jason Ader’s rating is based on GitLab’s strong performance in the third quarter, where the company achieved a 25% revenue growth, surpassing expectations. This growth was driven by robust demand for its Ultimate product and consistent sales cycles, alongside a notable increase in SaaS revenue. Despite some challenges such as SMB weakness and federal impacts, GitLab’s enterprise presence and the expansion of the total addressable market in developer tools, particularly with the rise of AI, provide a positive outlook.
Furthermore, GitLab’s management has shown prudence in their guidance, embedding conservatism to navigate ongoing market transitions and macroeconomic factors. The company’s confidence in its growth objectives for fiscal 2026 and beyond, aiming to exceed $1 billion in sales, underscores its strategic focus and potential for long-term success. These factors collectively justify the Buy rating, reflecting optimism about GitLab’s future prospects despite current market challenges.
According to TipRanks, Ader is a 3-star analyst with an average return of 2.6% and a 45.78% success rate. Ader covers the Technology sector, focusing on stocks such as Varonis Systems, JFrog, and CommVault Systems.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $70.00 price target.