GitLab Inc (GTLB) PT Raised to $55 at Rosenblatt, 'We remain buyers of the stock'

Rosenblatt analyst Blair Abernethy raised the price target on GitLab Inc (NASDAQ: GTLB) to $55.00 (from $43.00) while maintaining a Buy rating.

The analyst comments "GitLab reported a solid Q2 with revenue up 21% Y/Y to $286m, 4.5% ahead of our estimate and guidance. Growth was driven by subscription revenue, which rose 21% Y/Y (vs our 16% estimate), representing 90% of revenue. Net ARR grew 40% in Q2, the second-highest growth in four years, and Ultimate subs now account for 59% of ARR, up 35% Y/Y. GitLab guided Q3 above consensus and raised its FY27 revenue guidance to 18-19% Y/Y growth from 16-17%. In our view, Q2 demonstrated meaningful operational progress with new customer adds, rapid Duo Agent Platform adoption (grew 50% sequentially), and sales productivity. To further shift from seat-based subscriptions, GitLab released two more consumption products in August and expects to have several more available by year-end. The new Flex subscription program signed 130 customers, providing flexible seat and agentic consumption-based products. Post Q2, we are increasing our FY27-28 forecasts and our target price to $55 (was $43). We remain buyers of the stock."

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