GitLab Inc. (GTLB)
Macquarie Research has cut its12 month target forecast to $40 from $70, signaling a more cautious stance on the company’s medium-term prospects. While GitLab delivered a respectable third-quarter revenue beat that demonstrated continued demand for its DevSecOps platform and effective near-term execution, Macquarie noted that the performance did little to alleviate broader concerns about the company’s longer-term growth trajectory.
According to the firm, GitLab’s updated FY26 outlook points to a meaningfully slower pace of expansion than previously anticipated. This more subdued trajectory raises questions about the company’s ability to sustain momentum in customer acquisition, cross-selling, and successful monetization of its higher-tier product offerings. Macquarie also underscored intensifying competitive dynamics within the DevOps and developer-productivity landscape, where large incumbents and well-funded emerging players continue to invest heavily, as a factor that could pressure GitLab’s market share gains and pricing power over the next several years.
The analysts highlighted that enterprise adoption, a key component of GitLab’s long-term strategy and a major driver of potential operating leverage, may ramp more slowly than management previously expected. Combined with a macro environment where IT spending remains uneven and procurement cycles are elongated, these elements could dampen GitLab’s ability to reaccelerate growth at the pace investors were once pricing in.
As a result, Macquarie believes that, despite solid near-term execution, investors may continue to approach the stock with caution. The firm concluded that these factors justify a more conservative valuation framework, leading to the lowered target price.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
