Cantor Fitzgerald increased its price target for GitLab to $50 from $35, citing accelerating artificial intelligence integration as a key driver of platform engagement and deal activity.
The brokerage joins TD Cowen and UBS in revising GitLab’s valuation upward, with TD Cowen raising its target to $42 from $29 and UBS maintaining a $40 target. GitLab’s stock closed at $44.87 on Friday, up nearly 7% over the past week and 71% over the last six months.
Committed paid annual recurring revenue has surpassed $20 million, while new customer growth rose 30% year-over-year in the first quarter of fiscal 2027. The company’s Duo Agent, an AI-powered tool, performed above expectations and was included in four of the 10 largest deals closed during the quarter.
Analysts at Guggenheim project revenue growth of 19% in the second quarter of fiscal 2027, a deceleration from the 29% growth recorded in the prior year. Gross profit margins remain robust at 87%, according to InvestingPro data.
Options data from Bloomberg indicates the stock could experience a 14% swing following the earnings release scheduled for September 1. GitLab’s Chief Business and Legal Officer, Thomas Lloyd, was appointed to oversee commercial and legal functions and serve as an advisor to the board.
The upgrades reflect broader optimism around AI’s role in enhancing DevOps workflows, particularly in CI/CD processes as code generation expands.
