- GitLab's (GTLB, Financial) shares fell 10% following Q2 and annual guidance that missed Wall Street expectations.
- Despite solid Q1 results, GitLab's revenue forecast did not satisfy market predictions.
- Analysts remain optimistic, projecting a potential 47.88% upside with an "Outperform" consensus recommendation.
GitLab Inc. (GTLB) shares experienced a notable 10% decline after the company released guidance for the second quarter and the full fiscal year that fell just short of Wall Street's ambitious forecasts. The company expects Q2 earnings per share to range between $0.16 and $0.17, on a revenue prediction of $226 million to $227 million. Despite reporting impressive first-quarter results, the market's high expectations were not fully met, prompting the drop in stock price.
Wall Street Analysts Forecast
The sentiment among Wall Street analysts remains optimistic for GitLab Inc. (GTLB). Based on one-year price targets from 26 analysts, the average target price stands at $71.74. Estimates suggest a high target of $90.00 and a low target of $45.00. This average forecast indicates a potential upside of 47.88% from GitLab's current trading price of $48.51. For more intricate details, further estimates are accessible on the GitLab Inc (GTLB, Financial) Forecast page.
Moreover, GitLab Inc. enjoys a favorable consensus recommendation rating of 1.9 from 29 brokerage firms, which translates to an "Outperform" status. The rating system ranges from 1 to 5, with 1 signifying a Strong Buy, and 5 indicating a Sell recommendation.
In alignment with GuruFocus metrics, the estimated GF Value for GitLab Inc. in one year is projected at $96.41. This calculation implies a substantial upside potential of 98.74% from its current price of $48.51. The GF Value is GuruFocus' projection of the stock's fair value, computed using historical trading multiples, past business growth, and anticipated future performance metrics. Investors seeking more comprehensive data are encouraged to visit the GitLab Inc (GTLB, Financial) Summary page.
