GitLab initiated with a Buy at Guggenheim

Guggenheim initiated coverage of GitLab (GTLB) with a Buy rating and $70 price target offering 43% potential upside. The firm’s work shows that GitLab is the leading enterprise-focused development, security, and operations platform. However, the stock’s valuation is “depressed” due to concerns that artificial intelligence coding tools will replace software developers, threatening the company’s seat-based model, the analyst tells investors in a research note. Guggenheim thinks these risks are overblown and that GitLab “has a formidable offensive strategy in play.”