GitLab downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded GitLab (GTLB) to Sector Perform from Outperform with a price target of $25, down from $33. The firm believes short-term headwinds will likely keep the shares range-bound. The headwinds include challenging Premium price increase compares, price-sensitive customer exposure, first order sales transition risks, increased corporate layoffs, geopolitical uncertainty, and ongoing competitor product announcements, the analyst tells investors in a research note. RBC does not expect GitLab’s Duo Agent Platform to contribute to its short-term results.