BofA lowered the firm’s price target on GitLab to $66 from $80 and keeps a Buy rating on the shares ahead of the company’s Q2 report due on Tuesday, September 3. GitLab recently reaffirmed guidance so the firm is expecting results to at least meet Street expectations, but it adds that “a beat-and-raise is likely necessary to be a catalyst.” The firm’s lowered price target is based on a lower EV/R/G multiple to account for its leadership position in DevSecOps, balanced against potential rising competition from AI-powered code generation alternatives.
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