Analyst Derrick Wood from TD Cowen reiterated a Buy rating on Gitlab (GTLB – Research Report) and keeping the price target at $82.00.
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Derrick Wood has given his Buy rating due to a combination of factors indicating strong growth prospects for Gitlab. His analysis points to robust demand in the end-market and consolidation trends for Gitlab’s DevSecOps platform, which are expected to drive substantial growth. The company is seeing strong upgrade motions for its Ultimate SKU and growing traction of its Duo product, which further supports the positive outlook.
Moreover, Wood highlights Gitlab’s recent performance, with the company achieving 31% revenue growth in the last quarter, surpassing market expectations, and an upward revision of growth guidance for the next fiscal year. The attractive valuation of Gitlab at current levels also contributes to the Buy rating. Positive feedback from partners and a high priority given to DevSecOps investments in budgets further reinforce the expectation of continued momentum and competitive advantage for Gitlab.
Wood covers the Technology sector, focusing on stocks such as Salesforce, Microsoft, and ServiceNow. According to TipRanks, Wood has an average return of 17.6% and a 64.37% success rate on recommended stocks.
In another report released on February 19, Wells Fargo also maintained a Buy rating on the stock with a $85.00 price target.