Guggenheim Asserts GitLab's Inc. (GTLB) 'Buy' Rating, Downplays AI Risks

Gitlab Inc. (NASDAQ:GTLB) is one of the best tech stocks to buy, according to Cathie Wood. On September 11, Guggenheim initiated coverage of the stock with a “Buy” rating and a $70 price target. The positive stance comes amid expectations that artificial intelligence will enhance demand for the company’s software platform, rather than undermining it.

According to Guggenheim, there is a significant increase in the headcount of developers amid heightened adoption of artificial intelligence. The increase can only result in substantial usage of the software platform, which should benefit GitLab.

“AI code assistants primarily augment developer workflows and complement GitLab’s comprehensive DevSecOps platform,” analysts wrote, adding that internal surveys show most enterprises plan to grow developer headcount.

Analysts at the research firm view the company as a leading enterprise-focused DevSecOps platform, owing to its high retention rate of over 95%. Consequently, concerns that AI coding assistants will ultimately replace developers who leverage the company’s solutions appear overblown.

Gitlab Inc. (NASDAQ:GTLB) provides an integrated, single-application platform for the entire DevOps lifecycle, offering tools for software development, security, and operations (DevSecOps). It helps teams collaborate on code, manage projects, automate builds and deployments using CI/CD, and ensure security and compliance throughout the entire process.

While we acknowledge the potential of GTLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.