GitLab upgraded to Buy from Hold at Needham

Needham analyst Mike Cikos upgraded GitLab (GTLB) to Buy from Hold with a $70 price target GitLab has broadened its offering and Needham sees sustained Ultimate strength as a result of product innovation such as Duo Pro Enterprise and Dedicated, the analyst tells investors in a research note. The firm sees greater Ultimate adoption relative to Premium resulting from a “melt-up” to greater enterprise-selling where budgets are larger and stronger in the current macro environment. Under multiple scenarios, Needham believes GitLab can report revenue upside to the October quarter, supplemented by continued strength in incremental margins.