Mizuho has shown confidence in GitLab Inc (NASDAQ: NASDAQ:GTLB) by increasing its price target from $58.00 to $62.00 and maintaining an Outperform rating.
The decision followed GitLab's second-quarter financial results, which surpassed expectations with a year-over-year revenue increase of 31%, notably higher than the anticipated 27%.
GitLab demonstrated robust performance amidst a challenging economic climate, outpacing many of its software industry counterparts.
The company's bookings, based on combined Remaining Performance Obligations (cRPO) and Reported Performance Obligations (RPO), showed a significant upturn, along with strong enterprise engagement.
In response to the positive quarterly outcome, GitLab revised its fiscal year 2025 guidance upwards, exceeding the gains of the second quarter.
Mizuho's optimism about GitLab's growth prospects is rooted in the company's potential for seat expansion, the ability to implement price hikes, and the opportunities for upselling.
In other recent news, GitLab reported strong second-quarter performance. Following this, Goldman Sachs (NYSE:GS) maintained an $80 target on GitLab, reiterating its Buy rating, while BTIG raised its price target to $63 from $58, also retaining a Buy rating. GitLab's revenue grew by 31%, exceeding the consensus estimate of 27%, and its operating profit margin reached 10%, surpassing the expected 6%. Both revenue guidance and operating profit margin forecasts have been raised for future quarters.
KeyBanc maintained an Overweight rating and a $62 price target on GitLab, anticipating a modest revenue beat. BofA Securities revised its price target downward to $66 from $80, while TD Cowen and Mizuho reduced their targets to $58 from $76 and $62 respectively. All firms maintained positive ratings on the stock, indicating continued confidence in the company's prospects.
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