Analyst Michael Turrin from Wells Fargo maintained a Buy rating on Gitlab (GTLB – Research Report) and keeping the price target at $85.00.
Michael Turrin has given his Buy rating due to a combination of factors including GitLab’s promising setup as they approach their fourth quarter earnings report. The company has demonstrated consistent performance improvements throughout the year, surpassing expectations in the first three quarters. Furthermore, the forecasts for the upcoming fiscal year appear manageable, with expectations of growth remaining substantial yet achievable.
Another critical factor influencing the Buy rating is GitLab’s strategic positioning in the evolving AI-driven market, particularly in the area of AI tools for code generation. The company is poised to benefit from this technological wave, with projections indicating a notable contribution to their growth. Additionally, GitLab’s valuation, while higher than some peers, is justified by its role as a consolidator in the DevSecOps space and its potential to capitalize on the AI product cycle, supporting the price target set by the analysis.
Turrin covers the Technology sector, focusing on stocks such as Microsoft, Atlassian, and Salesforce. According to TipRanks, Turrin has an average return of -1.1% and a 46.69% success rate on recommended stocks.
In another report released on February 21, Robert W. Baird also maintained a Buy rating on the stock with a $80.00 price target.