KeyBanc keeps an Overweight rating on GitLab (GTLB) with a $62 price target after Reuters and other media outlets are reporting the company has recently received acquisition interest and is potentially considering selling itself. The firm says its previously cited GitLab as a potential takeout candidate, given its “strong DevOps tool set and capabilities.” It highlighted Alphabet’s (GOOG, GOOGL) Google and Oracle (ORCL) as potential suitors, but notes Google is likely out given reports it is acquiring Wiz for $23B. Given the scarcity value of quality and at scale DevOps assets, GitLab should command a “meaningful premium” in a buyout, potentially upwards of 12-14 times next 12 months enterprise value to sales, which would equate to $73-$84 per share, the analyst tells investors in a research note. GitLab in early trading is up 11%, or $5.42, to $56.08.
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