GitLab’s Surprising Quarter: What Are Analysts Whispering About Its Future?
Business Insider – Anusuya Lahiri
GitLab Inc. had a successful quarter with a third consecutive beat-and-raise, with analysts showing optimism about its future.
Here are the key takeaways from different analysts:
– **Truist Securities**: Analyst Miller Jump has a Buy rating and increased the target from $65 to $70, citing strong execution and demand for the company’s platform.
The upcoming quarter’s guidance is seen as potentially conservative due to early growth drivers.
Jump expects Q4 revenue of $158 million and EPS of $0.08.
– **Scotiabank**: Analyst Nick Altmann maintained a Buy rating and raised the target from $60 to $70.
Better than expected results, booking recovery, and raised guidance contributed to positive after-hours stock movement.
However, there are ongoing discussions about FY25 projections, mainly due to the anticipated $10 million to $20 million boost from Premium pricing changes.
Altmann estimates Q4 revenue to be $157 million.
– **RBC Capital**: Analyst Matthew Hedberg has an Outperform rating with a target price raised from $62 to $70.
GitLab’s strong quarter is promising despite mixed economic signals.
Upsides are expected from a Premium tier price increase and other product offerings.
Hedberg predicts Q4 revenue of $157.5 million and EPS of $0.08.
– **Needham**: Analyst Mike Cikos maintains a Hold rating, noting that the third-quarter results were above expectations.
The most crucial point from the earnings call is the expected revenue increase due to the Premium SKU price hike in FY25, although this is below buy-side expectations.
Cikos forecasts Q4 revenue of $157.6 million and EPS of $0.08.
– **Cantor Fitzgerald**: Analyst Jonathan Ruykhaver gave an Overweight rating and increased the target from $55 to $65.
He highlighted GitLab’s good positioning to secure the software supply chain post high-profile hack incidents.
Ruykhaver expects Q4 revenues to be $157.4 million with EPS of $0.08.
Overall, despite concerns on broader economic issues and specific debates around FY25 guidance, analysts appear bullish on GitLab’s potential for growth and increased adoption, reflected in their raised price targets and mostly positive ratings.
The company’s stock price rose 11.10% to $60.42.
Link: https://markets.businessinsider.com/news/stocks/gitlab-s-surprising-quarter-what-are-analysts-whispering-about-its-future-1032875873