BTIG analyst Gary Powell lowered the price target on GitLab Inc (NASDAQ: GTLB) to $67.00 (from $86.00) while maintaining a Buy rating.

The analyst comments "GTLB delivered solid FQ1 results and maintained its revenue outlook for FY26. Most notably, GTLB posted revenue of $214.5MM / +26.8% y/y about 1% ahead of our est. of $212.5MM / 25.6% (Street $213.0MM). While GTLB did not miss, the upside was the thinnest beat in company history. Looking forward, GTLB guided FQ2 revenue right on top of the street at a midpoint of $226.5MM and maintained the full year outlook at $939MM. We understand that investors were hoping for a larger beat and potentially a pass-through raise. But given commentary across software on deal delays in April related to tariff uncertainty, we did not think the print was that surprising. Furthermore, underlying metrics such as CRPO and CRPO bookings were strong. Commentary on the macro environment and federal spending was encouraging. And FCF generation was substantially above expectations. In AMC trading, GTLB shares were down 13% (Nasdaq unchanged), and we think it is an overreaction. Our revenue estimates for FY26/FY27 are unchanged. FY26 guidance calls for growth of 23.7% and in an upside scenario, we think GTLB can grow 25%+. Furthermore, we think investors do not fully appreciate GTLB’s rapidly improving FCF profile and think FCF margins could expand to 20%+ this year. On our new estimates, GTLB is trading at only 24.0x CY26E EV/FCF. Given that our coverage trades at 30.0x CY26E EV/FCF with ~15% growth, we think GTLB’s risk reward is compelling. Reit Buy."