DA Davidson has revised its price target for GitLab (GTLB, Financial), reducing it from $60 to $45, while maintaining a Neutral rating on the stock. This adjustment is part of a comprehensive update on the software sector. The change reflects expectations of a potential economic contraction in the United States, with the possibility of experiencing one or two quarters of negative GDP growth this year.
The revised outlook suggests that such economic conditions would likely lead to diminished growth and lower valuations for companies within the sector. Additionally, DA Davidson anticipates a reduction in consumer spending and corporate investments over the upcoming quarters, which further influenced the decision to adjust the price target.
These projections are made regardless of any changes in the tariff environment, underscoring broader economic concerns that could impact market performance. Investors are advised to consider these factors when evaluating GitLab and other companies within the software industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for GitLab Inc (GTLB, Financial) is $77.55 with a high estimate of $90.00 and a low estimate of $58.00. The average target implies an upside of 79.88% from the current price of $43.11. More detailed estimate data can be found on the GitLab Inc (GTLB) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, GitLab Inc's (GTLB, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for GitLab Inc (GTLB, Financial) in one year is $93.56, suggesting a upside of 117.03% from the current price of $43.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GitLab Inc (GTLB) Summary page.
