GitLab price target lowered to $55 from $70 at Cantor Fitzgerald

Cantor Fitzgerald lowered the firm’s price target on GitLab to $55 from $70 and keeps an Overweight rating on the shares. GitLab delivered a solid start to Q1, beating consensus estimates for revenue, operating income, and record first time free cash flow, but Cantor notes the muted aftermarket stock reaction driven by what it believes to be a conservative raise to FY25 guidance calling for top-line growth of 26.7% year over year at the mid-point even when taking into consideration the $4M standalone selling price allocation analysis headwind, the analyst tells investors in a research note. The firm views GitLab as a net beneficiary in the consolidation of AI-powered DevSecOps toolchains, as customers demand both leading tech innovation while maintaining the lowest total cost of ownership.