GitLab downgraded to Underweight from Equal Weight at Barclays

Barclays analyst Raimo Lenschow downgraded GitLab (GTLB) to Underweight from Equal Weight with a price target of $34, down from $42. The firm adjusted ratings in the software group as part of its 2026 outlook. Barclays sees a favorable setup for software in 2026. Macro and IT spending are stable, while stock valuation levels are low and the sector is out of favor, the analyst tells investors in a research note. However, Barclays expects GitLab’s growth will decelerate as it laps pricing and the combination of frequent management changes and a “rapidly evolving” market. This creates a tough setup for shares, the firm contends.