Wall Street Firms Cautious on GitLab Inc. (GTLB) Despite Robust Q3 Revenue Growth

Gitlab Inc (NASDAQ:GTLB) is one of the best beaten down stocks to invest in according to analysts. On December 16, BTIG began coverage of Gitlab Inc (NASDAQ:GTLB) with a Buy rating and a $52 target. On December 3, Morgan Stanley reiterated an Overweight rating on the stock but cut the price target to $55 from $60. In contrast, Macquarie downgraded the stock to Neutral from Outperform and cut the price target to $40 from $70, concerned that the company has yet to show a clear path to reaccelerating growth.

GitLab delivered a small third-quarter revenue beat of $244.4 million, up 25% year over year. Nevertheless, the company increased the guidance, marking the first increase of the year. Macquarie has raised concerns that the company is facing challenges due to weakening federal and small business demand. The company is also experiencing a slowdown in customer remaining performance obligations growth, which declined to 28% from 34% in the third quarter.

On the other hand, DA Davidson reiterated a Neutral rating and a $45 price target on Gitlab, concerned by worsening growth trends and conservative guidance.

GitLab Inc. (NASDAQ:GTLB) is the company behind GitLab, a comprehensive, AI-powered DevSecOps platform that enables organizations to plan, build, secure, and deploy software in a single application. The platform is designed to help development, security, and operations (DevSecOps) teams collaborate effectively and deliver software faster and more securely.

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