GitLab (GTLB) Stock: Why Wall Street Thinks AI Will Fuel Its Growth

GitLab Inc. (NASDAQ:GTLB) is one of the AI Stocks Gaining Attention on Wall Street.  On July 15, Rosenblatt initiated the stock as “Buy” with a $58 price target. The firm said that the software company is well-positioned for growth and share gains.

The technology landscape is witnessing increasing complexity in terms of application development, and there is a widespread adoption of AI-assisted coding. According to Rosenblatt, both of these factors are working in favour of GitLab.

The firm contended that even though generative AI is commoditizing parts of the coding process, it will eventually lead to more code creation. This, according to Rosenblatt, benefits platforms like GitLab that manage the full software development lifecycle.

GitLab (GTLB) Stock: Why Wall Street Thinks AI Will Fuel Its Growth

A Wall Street trading floor, chaotic with activity as traders and financial analysts analyze the company’s impact on the markets.

The firm also pointed out that there is growth potential from selling its higher-tier “Ultimate” plans and adopting new AI-based add-on products. Since there are only a quarter of GitLab’s paying users currently on Ultimate, there is ample room to grow recurring revenue across its 10,000-plus customer base.

“In our view, the growth in and complexity of modern cloud and emerging GenAI applications and the upsell opportunity for GitLab provide significant runway for growth.”

“We believe GitLab has established itself as one of the two leading providers of comprehensive software development platforms, with over 30m registered users, and has broadened into many adjacent areas and additional personas, just in time to make the Company robust (and perhaps even anti-fragile) to the AI wave”.

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.

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Disclosure: None.