Bank of America Securities raised its price target on GitLab Inc. to $54 from $45 on strong fiscal second-quarter results that exceeded both the bank’s and consensus expectations.
GitLab reported adjusted earnings of $0.25 per share, surpassing the $0.18 estimate, while revenue totaled $286.3 million against a $273.12 million forecast. The company’s gross profit margin remained robust at 87%, and year-over-year revenue growth accelerated to 21%, according to Mizuho’s assessment.
Subscription revenue, total revenue, and non-GAAP operating profit all came in above both Bank of America’s and Street projections, reinforcing the positive momentum. The firm also raised its fiscal 2027 total revenue guidance by $16 million at the midpoint, lifting the range to $1,129 million to $1,133 million. Third-quarter revenue growth is projected to decelerate to 15.4% from 21.3% in the prior quarter.
Mizuho separately increased its price target to $47 from $34, while maintaining a neutral rating. William Blair upgraded GitLab to market perform, though BofA and Mizuho kept their neutral calls intact. GitLab shares have surged 72% over the past six months.
