GitLab price target lowered to $62 from $70 at KeyBanc

KeyBanc analyst Jason Celino lowered the firm’s price target on GitLab to $62 from $70 and keeps an Overweight rating on the shares. The firm notes GitLab posted a $3M/2% top-line beat, though lighter than the $7M-$9M scenario beat KeyBanc previewed. OM outperformance was a welcomed surprise, beating by 500+ bps in Q1, and FY25 margins were raised nearly 4 points at the midpoint. While management noted a still cautious, yet stable macro environment, it’s raising full year revenue guidance by $7M at the midpoint, inclusive of a $4M incremental headwind from the updated SSP analysis, and representing an optical “net raise,” in the firm’s view. Overall, KeyBanc remains encouraged by GitLab’s consolidation opportunities in a fragmented DevSecOps market.