BofA Securities raised its price target for GitLab Inc. to $54 from $45, maintaining a Neutral rating after the DevSecOps platform provider reported second-quarter results that exceeded expectations.
GitLab’s adjusted earnings per share came in at $0.25, topping the $0.18 forecast, while revenue reached $286.3 million against estimates of $273.12 million. Subscription revenue and non-GAAP operating income also surpassed projections. The company’s gross profit margin remained steady at 87%, and its stock has gained 72% over the past six months.
Analysts at Mizuho raised their price target to $47 from $34, also keeping a Neutral rating, citing strong commercial execution and productivity gains. William Blair upgraded GitLab to Market Perform, highlighting improved operational performance and record gross bookings. The stock closed at $44.87 on August 28, up 0.13%, and edged to $44.84 in after-hours trading.
GitLab raised its full-year 2027 revenue guidance by $16 million at the midpoint, setting a new range of $1.129 billion to $1.133 billion. Third-quarter revenue growth is projected at 15.4%, down from 21.3% in the prior quarter. Mizuho noted year-over-year revenue growth of 21%.
BofA attributed the slower Q3 growth outlook to management conservatism, suggesting it may raise questions about sustaining 20% growth amid the transition to the Flex model. The bank views the risk-reward balance as neutral until clearer evidence emerges that the model accelerates sustainable growth rather than complicating revenue recognition.
