GitLab Inc (GTLB) PT Raised to $50 at UBS on Strong Q2 Results
UBS analyst Radi Sultan raised the price target on GitLab Inc (NASDAQ: GTLB) to $50.00 (from $40.00) while maintaining a Neutral rating.
The analyst commented, "GTLB reported a strong 2Q27 with total revs of $286m/+21.3% y/y against a bogey we thought had drifted to 21%+ given the stock's recent run (see our preview here) but in retrospect we may have been too cautious and the bogey may only have been in the ~20% range. Assuming a similar magnitude beat for 3Q27 (4.5% vs high-end) would leave revs growth at 21%, roughly stable q/q, not the implied acceleration some had hoped for, but "good enough" given investor positioning still leaning bearish (more so than we thought). This leaves the question: can the multiple hold or continue re-rating higher with only stable growth? We're mixed on this and with the stock at just over ~5x our CY27 revs we think the risk/reward from here looks balanced and remain Neutral rated. However, the one emerging growth vector we have begun to hear traction around is non-developer seat count adds, in our checks we heard of one large telecom customer recently adding +500-1k non-developer (HR/Marketing/Finance) seats vs their current 15k GTLB seats. It's still early but if this can meaningfully expand the addressable base for GTLB we think this could be an interesting multi-year growth catalyst."