Truist Securities Downgrades GitLab to Buy, PT Lowered to $55 from $75.

Truist Securities Downgrades GitLab to Buy, PT Lowered to $55 from $75.

Truist Securities has downgraded GitLab (GTLB) to a "Buy" rating and lowered its price target to $55 from $75. This move comes after GitLab reported its fiscal 2026 Q2 earnings, which saw strong revenue growth but a significant decline in profitability [1].

GitLab reported a 29.2% year-over-year revenue growth to $236 million, driven by robust performance in recurring revenue streams. However, the company swung to a loss of $0.06 per share, marking a 175% decline from the prior-year profits [1]. The stock fell 2.27% despite raised profit guidance, reflecting mixed market sentiment over recurring revenue strength and persistent losses [1].

The company maintained its full-year 2026 revenue outlook at 24% growth but raised profit expectations, citing operating leverage and strategic shifts. CEO William Staples highlighted strategic investments in AI-native DevSecOps and leadership changes, projecting 23% 2026 Q3 revenue growth [1].

Truist Securities' decision to downgrade GitLab and lower the price target reflects a cautious but optimistic outlook on the company's future prospects. The firm's recent earnings and strategic shifts, along with market sentiment, have influenced the decision. Investors should closely monitor GitLab's earnings reports and analyst ratings for further insights [2].

References:
[1] https://www.ainvest.com/news/gitlab-2026-q2-earnings-misses-targets-net-income-deteriorates-181-7-2509/
[2] https://www.marketbeat.com/instant-alerts/filing-gw-henssler-associates-ltd-acquires-145049-shares-of-truist-financial-corporation-tfc-2025-09-01/