By Senad Karaahmetovic
Goldman Sachs analysts reiterated a Buy rating and a $65 per share price target on GitLab (NASDAQ:GTLB) after hosting the company’s CFO, Brian Robins.
The analysts have grown “incrementally more positive on the company’s growth outlook” following the talks with Robins.
“Though the near-term debate surrounds lowered FY24 guidance and the potential for generative AI to alter the competitive landscape, we see GTLB holding several levers that can sustain long-term growth and preserve the company’s solidified market position,” they wrote in a client note.
Not just in the near-term but the analysts are growing more positive on GTLB in the mid-term as they believes the company is “favorably” positioned for FY25.
“With its expansive product reach across the software development lifecycle and the still-nascent adoption of managed DevOps solutions, we see the recent slowdown in net expansion rates being a short-term dynamic,” they added.
The analysts' price target of $65 per share implies an upside risk of nearly 100% relative to yesterday’s closing price.