UBS has increased its price target for GitLab to $50 from $40 while keeping a Neutral rating on the stock, citing sustained revenue growth and margin strength.
GitLab reported Q2 fiscal 2027 revenue of $286 million, up 21.3% year-over-year, and exceeded its guidance by $13.2 million. Subscription revenue, which accounts for 90% of total sales, rose 21% year-over-year, while gross profit margin stood at 87%. The company also beat analyst estimates by 4.5% in the quarter.
For Q3 fiscal 2027, GitLab projects revenue growth of approximately 21%, roughly in line with Q2’s performance and about 4.5% above the high end of its guidance. UBS noted that GitLab’s revenue multiple remains below five times its 2027 revenue estimate, despite a 72% return over the past six months.
The firm highlighted expanding use cases beyond traditional developer roles, including additions in human resources, marketing, and finance. One large telecommunications customer added 500 to 1,000 non-developer seats to its existing base of 15,000 GitLab seats.
Other analysts have also raised their targets: Needham set a $65 target, Canaccord raised its target to $70, Rosenblatt set a $55 target, Morgan Stanley adjusted its target to $57, and Truist Securities increased its target to $48.
