GitLab acquisition price would likely be ‘steep,’ says Piper Sandler

Piper Sandler analyst Rob Owens notes reports that GitLab (GTLB) is exploring a potential sale, with articles noting that the company has seen interest from multiple bidders, including Datadog (DDOG). The firm believes this highlights GitLab as “a unique asset in a compelling segment” and provides validation of the firm’s view that “the best is yet to come as AI profoundly impacts the software development lifecycle” along with the company’s strong position and product set to monetize the opportunity. The firm sees a broader list of potential suitors around software development / infrastructure software as well as potentially the hyperscalers, but also believes that GitLab has the ability to execute on its opportunity as a standalone company, which it contends “would likely make any acquisition price steep.” Piper maintains an Overweight rating and $75 price target on GitLab shares.