Software development facilitator GitLab (NASDAQ: GTLB) was facilitating some handsome returns for shareholders on Thursday, thanks in no small part to an optimistic new analyst note. In late-session trading the company’s share price was up by almost 4%, and doing much better than the slumping S&P 500 index with its 0.2% decline.
Bullish pundit take reiterated
That note was published in anticipation of the release of GitLab’s earnings for the fiscal first quarter of 2026, which is scheduled for next Tuesday, June 10. Its author, KeyBanc’s Jason Celino, reiterated his overweight (buy, in other words) recommendation on the specialty tech stock, and his price target of $60 per share. That implies potential upside of nearly 22% on the stock’s current level.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
According to reports, Celino believes GitLab could very well post a year-over-year revenue growth figure higher than the lofty 25.9% analyst consensus. In his view this will be driven by continued take-up of the company’s Duo and Dedicated solutions, the former of which is powered by artificial intelligence (AI) functionalities.
That growth should have a positive knock-on effect with GitLab’s full-year guidance; the analyst implied that the company’s projections for the period will be raised. He did sound a note of caution about the spending of public-sector clients, given recent federal government budget-tightening efforts.
Rolling along
GitLab is indisputably a success story in the tech world, and has solid momentum behind it that looks set to continue. Those public sector clients are something of a worry; however, I feel the company is resilient enough to survive a notable downturn in the segment.
Should you invest $1,000 in GitLab right now?
Before you buy stock in GitLab, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GitLab wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $668,538!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $869,841!*
Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 2, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GitLab. The Motley Fool has a disclosure policy.
