GitLab (GTLB) Gets Vote of Confidence From BofA—Here’s Why Analysts Are Bullish

GitLab Inc. (NASDAQ:GTLB) is one of the Trending AI Stocks on Wall Street. On July 10, BofA Securities analyst Koji Ikeda reiterated a “Buy” rating on the stock with a $72.00 price target.

The investment firm came out incrementally positive on GitLab’s long-term market potential following a meeting with CEO Bill Staples and CFO Brian Robins. The firm believes that the company’s “Duo strategy” is accurately positioned to gear up increased adoption of premium paid tiers and add-on AI products such as the Duo Pro, Duo Enterprise, and the Agent Platform.

Responding to concerns about code generation competitors likely leading to shrinking seats and technological disadvantages for GitLab, the firm noted that they are baseless and that code generation is “becoming a feature.” Moreover, GitLab’s end-to-end developer workflow efficiency remains differentiated.

GitLab (GTLB) Gets Vote of Confidence From BofA—Here’s Why Analysts Are Bullish

A group of analysts studying data on a large monitor.

The firm anticipates GitLab to uphold durable revenue growth exceeding 20% with expanding free cash flow margins over the medium term. It considers them to be “attractive investment traits.”

GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle in the US, Europe, and the Asia Pacific.

While we acknowledge the risk and potential of GTLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GTLB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Trending AI Stocks on News and Ratings and 12 AI Stocks Making Waves on Wall Street.

Disclosure: None.