Morgan Stanley Downgrades GitLab Inc. (GTLB) from Overweight to Equal Weight

GitLab Inc. (NASDAQ:GTLB) is among the Growth Stock Portfolio: 12 Stock Picks By Cathie Wood.

On January 12, 2026, TheFly reported that Morgan Stanley had reduced GitLab Inc. (NASDAQ:GTLB)’s price objective from $55 to $42. It downgraded it from Overweight to Equal Weight. The company pointed out that worries about growing competition from AI startups and threats to the expansion of developer seats are exaggerated. However, it added that it will take time to refute pessimistic assessments. It anticipates that FY27 will be a year of transition and that growth could potentially drop even more. Furthermore, Morgan Stanley identified short-term tactical concerns, such as the potential for initial FY27 forecasts to fall short of consensus projections.

On January 12, 2026, Barclays reduced its price objective from $42 to $34 and downgraded GitLab Inc. (NASDAQ:GTLB) from Equal Weight to Underweight. The modification was included in the prognosis for the software industry in 2026. Barclays stated that while IT spending and macro circumstances are solid and valuations are low, it anticipates that the firm’s growth will slow as it outpaces price. The corporation also stated that a changing market and frequent management changes made it challenging to set up the shares.

GitLab Inc. (NASDAQ:GTLB) operates an advanced DevSecOps platform for software innovation.

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