Macquarie maintains Outperform on GitLab, raises PT to $75 from $75.

Macquarie maintains Outperform on GitLab, raises PT to $75 from $75.

Macquarie Group Limited has maintained its "Outperform" rating on GitLab Inc. while raising its price target to $75 from $75. The move comes following GitLab's strong financial performance in the second quarter and the company's updated profit outlook for the year.

GitLab reported a 29% increase in revenue to $236 million, exceeding analysts' expectations of $226.9 million. The company also swung to a loss of $9.2 million, or 6 cents a share, in the second quarter, compared to a profit of $12.9 million, or 8 cents a share, a year earlier. However, adjusted earnings per share were 24 cents, ahead of estimates of 16 cents a share according to analysts polled by FactSet [1].

For the full year, GitLab expects adjusted earnings per share of 82 cents to 83 cents, up from its prior guidance of 74 cents to 75 cents. The company continues to expect full-year revenue of $936 million to $942 million. Analysts polled by FactSet were looking for adjusted per-share earnings of 75 cents on revenue of $940.8 million.

GitLab's CEO, Bill Staples, attributed the company's performance to the strength of its platform, which drives innovation with collaboration between humans and artificial intelligence across the software development lifecycle.

For the current quarter, GitLab expects adjusted earnings per share of 19 cents to 20 cents and sales of $238 million to $239 million. Analysts forecast adjusted per-share earnings of 19 cents on sales of $241.1 million.

Macquarie's positive outlook on GitLab reflects the company's robust growth prospects and strong market position in the software development tools sector.

References:
[1] https://www.marketwatch.com/story/gitlab-boosts-fy-profit-outlook-as-2q-revenue-jumps-01f3678f