TD Cowen analyst Derrick Wood has reiterated their bullish stance on GTLB stock, giving a Buy rating on August 14.
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Derrick Wood’s rating is based on several positive indicators for Gitlab’s future performance. Despite a mixed first quarter, Gitlab’s revenue growth remains strong, and the company’s backlog and billing figures are solid, indicating sustained demand. Additionally, the impact of AI coding tools appears to be a net positive rather than a threat, with AI potentially expanding the market rather than increasing competition.
Moreover, Gitlab’s valuation is considered attractive given its growth outlook, and recent checks suggest that the negative sentiment surrounding the stock is overblown. Sales hiring and open development jobs in the US have rebounded, and commercial partners report a slight uptick in performance and demand for Gitlab’s offerings. These factors contribute to a positive outlook, supporting the Buy rating.
In another report released on August 14, Mizuho Securities also reiterated a Buy rating on the stock with a $55.00 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.