Piper Sandler Downgrades GitLab Inc (GTLB) to Neutral

Piper Sandler analyst Rob Owens downgraded GitLab Inc (NASDAQ: GTLB) from Overweight to Neutral with a price target of $28.00 (from $55.00).

The analyst comments: "We are lowering our rating on shares to Neutral. While the modest valuation (currently trading at ~10x our lowered CY'27E FCF estimate) and the appearance of a meaningfully de-risked guidance did weigh on our thought process to remain more constructive, the messaging around F’27 being a year of finding stabilization while leaning in on increased sales expenses (op margins down 500 bps y/y) will likely create a show me situation for at least the next few quarters – especially with AI & headcount noise continuing at a steady cadence. We do believe that the company will come out on the positive side of the AI argument, but given concerns around slowing and the aforementioned reasons – we don’t believe investors should be buying the dip."

For an analyst ratings summary and ratings history on GitLab Inc click here. For more ratings news on GitLab Inc click here.

Shares of GitLab Inc closed at $26.70 yesterday.

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