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Raymond James lowers GitLab PT to $55, maintains Outperform rating.
ByAinvest
Thursday, Sep 4, 2025 8:49 am ET1min read
Raymond James lowers GitLab PT to $55, maintains Outperform rating.
Title: Raymond James Lowers GitLab PT to $55, Maintains Outperform RatingRaymond James has revised its price target for GitLab (GTLB) shares to $55, while maintaining an Outperform rating. This adjustment comes amidst a period of market volatility and shifting investor sentiment, following a series of financial developments and leadership changes at the company.
GitLab reported its Q2 FY2026 earnings, which saw adjusted diluted earnings per share (EPS) of $0.24 on revenue of $236M, both exceeding analyst estimates. However, the company's conservative revenue and EPS guidance for the full year raised eyebrows, as did the sudden exit of CFO Brian Robins. These factors contributed to a 9% premarket drop in GitLab's stock price [1].
The company's strategic pivot towards AI-driven DevSecOps has been a notable success. GitLab's integration of AI into its platform has boosted developer productivity by 40-50% and expanded margins amid SaaS pricing pressures [2]. Despite these advancements, the conservative forward guidance and leadership transition have amplified concerns about the company's growth prospects in the second half of the year.
Raymond James' revised PT reflects a cautious stance on the company's near-term outlook. The firm acknowledges GitLab's strong Q2 performance but remains cautious about the impact of the conservative guidance and leadership changes. The Outperform rating indicates that the firm believes GitLab's long-term prospects remain favorable, particularly given its AI-driven strategy and market leadership in DevSecOps.
Investors should closely monitor GitLab's Q3 earnings and any updates on its CFO search. The company's ability to navigate these challenges and maintain its strategic focus will be crucial in determining its stock performance in the coming quarters.
References:
[1] https://seekingalpha.com/news/4492181-gitlab-stock-slides-as-outlook-underwhelms-cfo-exits
[2] https://www.ainvest.com/news/gitlab-gtlb-ai-driven-margin-expansion-strategic-resilience-competitive-saas-landscape-2509/
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